COFCO buys Dutch commodity trader
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. –