Shanghai Pengxin Group Co is in talks to buy control of Brazilian mid-sized lender Banco Indusval & Partners SA (BI&P), as the Chinese conglomerate wants to expand beyond commodities in Latin America’s largest economy, three sources with direct knowledge of the matter said. Representatives of Pengxin and partners of BI&P have discussed tie-up scenarios, two of the sources said. The sources requested anonymity to discuss the issue…Full Article: The Global Times June 2016

Key Point

  • Shanghai Pengxin Group is reportedly interested in purchasing the Brazilian lender as a means to facilitate future agribusiness deals in the country. The Chinese company may invest upwards of US$3 billion in Brazil.

ChinaAg Comments

  • In April 2016, Hunan Dakang Pasture Farming (owned by Shanghai Pengxin) purchased a 57% stake in Brazil’s Fiagril (a major trader of soybeans, corn, biodiesel, and glycerin) for US$286 million. During the same month, 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 March 2016, Australian Rural Capital has announced it was partnering with Shanghai Pengxin Group to purchase S Kidman & Co Ltd (Kidman).
  • 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 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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