COFCO and Nidera Join Forces, Joint Venture Aimed At Future Growth
3 Mar 2014 --- COFCO Corporation, the largest grain, oil and foodstuff company in China, and Nidera, a global commodity trader and agribusiness company headquartered in the Netherlands, today signed an agreement, pursuant to which COFCO will acquire 51% of Nidera to establish a strategic partnership with this major player in the agricultural market with an annual turnover in excess of USD 17 billion.
The envisaged transaction will provide Nidera with great potential for growth in the Chinese market and also strengthen COFCO’s position as a key player in the global agricultural industry through access to Nidera’s global origination and trading network and its fast growing seed business.
Patrick Yu, President of COFCO, said, “We are delighted to reach a win-win agreement with Nidera. Nidera has a strong origination platform in Brazil, Argentina and Central Europe as well as a global trading network, which can further extend COFCO’s global presence and create new opportunities. COFCO is fully committed to supporting Nidera’s future development through COFCO’s competitive edge in trading, processing, branding and distribution.”
Ton Van Der Laan, CEO of Nidera, said, “This deal will generate great growth opportunities. The Chinese and Asian market share is of great importance to Nidera. We were looking for a strong partner to jointly invest in future growth and a strategic partnership with COFCO is an ideal choice for Nidera and will benefit both sides.”
“Investing in Nidera is inline with COFCO’s strategy to become a global player in the agricultural industry with a fully integrated value chain and represents a significant step towards COFCO’s global expansion.” Frank Ning, Chairman of COFCO, said.
In the coming months both COFCO and Nidera will work together to obtain regulatory approvals to close the transaction. According to the agreement, the existing shareholders of Nidera will all remain as shareholders of the company and the current leadership and management of Nidera will stay to secure a smooth integration and successful partnership.
