Hunan Dakang Pasture Farming, a company of the Shanghai Pengxin group, has paid US$286 million to acquire 57 percent of Brazilian trading company Fiagril Ltd, reported financial news agency Bloomberg. In a statement, Fiagril Participações, based in the state of Mato Grosso, reported its shareholders had reached an agreement with a Chinese company, whose shares are listed on the Shanghai Stock Exchange, for the sale of a stake in Fiagril, Lda…Full Article: Macau Hub May 2016

Key Point

  • Fiagril Ltd owns 30 subsidiaries across the states of Mato Grosso [western Brazil], Amapá [northern Brazil], Tocantins [central Brazil]. Its other major shareholders include Fiagril Participações (founders) and the New York-based investment firm Amerra Capital Management.

ChinaAg Comments

  • In late April 2016, the Australian government preliminary vetoed the sale of S. Kidman and Co. to Shanghai Pengxin once again. Shortly thereafter Shanghai Pengxin withdrew its bid.
  • In April 2016, Foresun Group (aka Heilongjiang Hengyang Cattle Industry) purchased three Argentine-based beef abattoirs from Brazil’s Marfrig Global Foods.
  • In March 2016, Australian Rural Capital has announced it was partnering with Shanghai Pengxin Group to purchase S Kidman & Co Ltd (Kidman).
  • In the wake of the failed November 2015 deal, Kidman sold its South Australia properties of Peake and Anna Creek in order to allay FIRB national security concerns. Anna Creek was sold to Williams Cattle for approximately AU 16 million (~US$12 million).
  • In November 2015, the Australian government vetoed the sale of S. Kidman and Co., a major cattle operator, on national security grounds. According to Australia’s Treasurer, half of Kidman’s Anna Creek pastoral lease lies within the country’s Woomera Prohibited Area (WPA) testing range in South Australia.
  • In August 2015, representative of S Kidman & Co Ltd stated that final bids to purchase the company will occur in late October 2015 at the earliest.
  • In March 2015, Australia passed a law requiring Foreign Investment Review Board (FIRB) approval for the sale of agricultural land valued over AUD 15 million (~US$10.8 million).
  • In late 2012, Shanghai Pengxin won a legal battle to purchase 16 North Island dairy (CraFarms) farms. The farms (8,000 ha and 16,000 cows) were purchased by Shanghai Pengxin’s subsidiary Pengxin New Zealand Farm Group.
  • Founded in 1997 and headquartered in Huaihua, Hunan Province, Hunan Dakang Pasture Farming (SHE:002505) is a producer of meat (pork, beef, sheep) and dairy products.
  • Founded in 1989 and headquartered in Mato Grosso State, western Brazil, Fiagril is a major trader of soybeans, corn, biodiesel, and glycerin. Fiagril is also a shareholder of Sierra Bonita Seeds (founded 2013), which is based in Goiás State (central-west Brazil) and is a distributor of genetically modified seed products from Syngenta, Monsanto, and Brasmax Genética.
  • Founded in 1988 and headquartered in Shanghai, Shanghai Pengxin owned more than 40 subsidiary companies as of 2015.  The conglomerate has businesses in real estate, mining, agriculture, and private equity.

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