China's biggest grain trader Cofco Corporation (Cofco), and commodities trader Noble Group, will form an agribusiness joint venture, said Noble Group on Apr 2.

Cofco will buy a 51 per cent stake in the unit called Noble Agri from Noble Group with cash.

Noble Agri will become a 51-49 joint venture after the deal, which values Noble Agri equity at 1.15 times of its 2014 book value.

Noble Agri had shareholders' equity of US$2.8 billion (S$3.5 billion) and net debt of US$2.5 billion, as at Dec 31, 2013.

Noble Group said in a joint statement: "Noble Agri will become the principal international origination platform for Cofco."

A consortium of international investors led by Hopu Investments will also join Cofco as minority co-investors in the acquisition.

Cofco chairman Frank Ning said in a statement: "Noble Agri's supply chain management system and origination capabilities complement Cofco's logistics, processing, and distribution network in China.

"Incremental trade volumes from Cofco as a strategic investor will create significant

synergy and value."