China's COFCO to acquire 51% of commodity trader Nidera
BEIJING (AFP) - China's state-owned grain giant COFCO said Friday it had bought a majority stake in Netherlands-based commodity trader Nidera for a reported US$1.2 billion (S$1.5 billion), as it seeks to become a global player in agribusiness.
COFCO's deal to buy 51 per cent of Nidera, which trades grains and soybeans among other agricultural commodities, is the latest in a string of major overseas investments by Chinese companies seeking to meet rising demand for food and energy in the world's second-largest economy.
The deal would give China greater control over pricing on the world's grain markets as well as better access to major grain-growing regions, such as Latin America and Russia, Dow Jones Newswires reported.
Financial terms of the COFCO-Nidera deal, which awaits regulatory approval, were not disclosed while the press release described Nidera as having "annual turnover in excess of US$17 billion".