Chinese State-run grain trader Cofco Corp said on Tuesday [23 August 2016] it will buy the remaining stake it does not already own in Dutch firm Nidera, the latest move to expand its global footprint…Full Article: China Daily Aug 2016

Key Point

  • COFCO Group will purchase the remaining stake from Cygne BV.

ChinaAg Comments

  • In December 2015, COFCO acquired the remaining 49% share of Noble Agri from Noble Group (Hong Kong) for US$750 million.
  • In October 2015, a “rogue trader” from Nidera BV (COFCO-owned) lost $200 million in biofuels. According to the Nidera CEO, the financial losses were noticed after global biofuel prices dropped in early 2015.
  • 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.

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