COFCO Corp, China’s largest food company, is setting up a joint venture with sovereign wealth fund China Investment Corp, in preparation of a full listing for its recently acquired grain, oil and sugar assets. According to an agreement signed by the two parties on Thursday, COFCO will control 80.1 percent of the venture, to be named COFCO International Holdings, while CIC will hold the remaining 19.9 percent…Full Article: China Daily May 2015

COFCO Corp, China’s largest food company, has invited investment banks to submit proposals for a possible group restructuring, people with knowledge of the matter said. The Beijing-based firm, which controls eight listed companies, will consider combining units and selling peripheral businesses to improve profitability, according to the people. Possibilities that may be proposed include COFCO’s cooking-oil producer China Foods Ltd divesting its confectionery business or merging with a sister company such as oilseed processor China Agri-Industries Holdings Ltd, they said, asking not to be identified as the information is private…Full Article: China Daily May 2015

Key Points

  • By 2019, COFCO (to be renamed COFCO International Holdings) hopes to have completed the integration of its grain, oil and sugar assets. Once this merger has occurred COFCO will float the company (i.e. issue shares to the public for investment trading) and seek a stock market listing.

ChinaAg Comments

  • In November 2014, COFCO acquired the state-owned enterprise Huafu Group, a company that manages non-staple food reserves (in China) in addition to processing and distributing food products.
  • 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.
  • In 2009, COFCO became the largest shareholder of Mengniu Dairy (based in Inner Mongolia).
  • In 2000, COFCO incorporated CPMC, China’s largest manufacturer of metal packaging products. CPMC produces the aluminum cans used by China’s Snow beer (market share leader of beer sales in China).

Similar Posts by ChinaAg

Spread the word. Share this post!