COFCO buys Dutch com­mod­ity trader

The Myanmar Times - - International Business -

CHINA’S grain gi­ant COFCO will buy out the mi­nor­ity share­hold­ers in Nether­lands-based com­mod­ity trader Nidera and take full own­er­ship of the com­pany as it seeks to be­come an agribusi­ness pow­er­house.

COFCO’s deal to buy out the re­main­ing 49 per­cent of Nidera, which trades grains and soy­beans among other agri­cul­tural com­modi­ties, comes two years af­ter it bought just over half of the com­pany for $1.2 bil­lion.

It is the lat­est in a string of ma­jor over­seas in­vest­ments by Chi­nese com­pa­nies seek­ing to meet ris­ing de­mand for food and en­ergy in the world’s sec­ond-largest econ­omy.

The deal would give China greater con­trol over pric­ing on the world’s grain mar­kets, as well as bet­ter ac­cess to grain-grow­ing re­gions, such as Latin Amer­ica and Rus­sia.

Fi­nan­cial terms of the new COFCONidera deal, which awaits reg­u­la­tory ap­proval, were not dis­closed.

As China’s pop­u­la­tion grows wealth­ier, for­eign prod­ucts are widely seen by con­sumers as be­ing safer and of higher qual­ity.

The Chi­nese gov­ern­ment has en­cour­aged the na­tion’s com­pa­nies to in­vest over­seas to se­cure nat­u­ral re­sources, open new mar­kets and gain ac­cess to for­eign tech­nol­ogy.

Chi­nese cor­po­ra­tions have been on an over­seas ac­qui­si­tion binge this year as the weak global econ­omy has pre­sented new and at­trac­tive tar­gets. –

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