The executive who built a state-owned food supplier into a global giant will be appointed to run a chemicals conglomerate, a person close to the matter says. Ning Gaoning, 57, will become chairman of Sinochem Group, replacing Liu Deshu, the source close to Ning said. Liu is 63 years old, the retirement age for leaders of state-owned companies. Ning became chairman of China National Cereals, Oils and Foodstuffs Corp. (COFCO) in 2004. Before that, he led China Resources (Holdings) Co. Ltd., another state-owned enterprise…Full Article: Caixin Online Dec 2015

Key Point

  • The chairman of China Grain Reserves Corporation will reportedly take over the helm of COFCO Group.

ChinaAg Comments

  • In December 2015, COFCO announced it would buy out the remaining 49% of Noble Group’s Noble Agri division.
  • COFCO’s February 2014 investment in Nidera and April 2014 investment in Noble Group was 60% financed by COFCO and 40% by outside investors such as: Hopu Investment Management Co. (Chinese private-equity firm), Temasek Holdings (Singapore state-owned investment firm), Standard Chartered Private Equity and the World Bank’s International Finance Corp.
  • 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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