China’s largest grain trader COFCO Corporation will pay 1.5 billion U.S. dollars to acquire a 51-percent stake in the agricultural unit of Singapore-listed supply chain manager Noble Group, Noble said on Wednesday [2 April 2014]. The deal will lead to a joint venture that will link COFCO’s grain processing and distribution business with the agricultural unit of Noble Group…Full Article: Xinhua Apr 2014

Key point

  • COFCO strengthened its supply chain network with the deal, while Noble said the deal will improve its credit profile

ChinaAg Comments

  • In March 2014, it was widely reported that COFCO was conducting due diligence on Noble Group’s Agribusiness Division
  • In February 2014, COFCO purchased a 51% stake (estimated at US$1.2 billion) in Nidera, a Dutch grain trading company
  • In March 2013, COFCO announced that it received $4.82 billion in loans from the China Development Bank in order to stabilize food prices and improve productivity
  • In November 2012, COFCO announced that for the next four years it had approximately US$10 billion to fund overseas mergers and acquisitions

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