ADQ acquires 45% stake in Louis Dreyfus

dubai — Abu Dhabi-based holding company ADQ has acquired an indirect 45 per cent equity stake in Louis Dreyfus Company (LDC), a global merchant and processor of agricultural goods, for an undisclosed amount.

LDC chairwoman Margarita Louis-Dreyfus was searching for a new investor for the 169-year-old company for fresh funding to boost the company’s finances. Under the long-term supply agreement between the two companies, Louis Dreyfus will supply sell agri-commodities to the UAE to ensure sustainable food supply for the country.

Upon completion of the transaction, a portion of its proceeds amounting to a minimum of $800 million will be invested into LDC to support the pursuit of long-term business plan and strategy, including the acceleration of strategic investments across the value chain, as the company evolves from its traditional role as an agri-commodities merchant to become an increasingly vertically integrated food, feed, fibres and ingredients company.

The agreement is subject to regulatory approvals. Mohamed Hassan Alsuwaidi, CEO of ADQ, said food and agriculture is an attractive and core sector to generate financial returns and strengthen the economic cluster locally.

“As one of the world’s leading agri-commodities and food companies, LDC represents a strategic investment opportunity for ADQ. With a diversified agri-commodity portfolio, significant scale and broad geographic footprint, LDC will further accelerate the progress we have already made this year in significantly expanding ADQ’s food and agriculture portfolio,” he said.