China’s central reserve food company Huafu Group has integrated into another state-owned enterprise (SOE) COFCO Corp. to become the latter’s wholly-owned subsidiary. Huafu Group will no longer be administered by the State-owned Assets Supervision and Administration Commission (SASAC) after the combination, the SASAC said. There will be 112 SOEs under the administration of the commission…Full Article: Xinhua Nov 2014

Key Point

  • According to the article, Huafu Group manages non-staple food reserves in addition to processing and distribution of food products.

ChinaAg Comments

  • In October 2014, COFCO announced plans to publicly list some of its assets, including a majority stake in Noble Group Ltd’s agribusiness unit. COFCO also stated it would hold off on major acquisitions amid the IPOs.
  • In April 2014, COFCO acquired a 51% stake (estimated at US$1.5 billion) in Noble Group’s Agribusiness Division (trades in grains, oilseeds, sugar, cocoa, cotton, and coffee).
  • 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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