Chinese state-owned agribusiness and food group COFCO is to set up a commodity venture with Singapore conglomerate Noble Group.
COFCO is to take a 51% stake in the Noble Agri venture, with Noble Group retaining 49%.
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The venture will be the main way COFCO sources food commodities. “Noble Agri will become the principal international origination platform for COFCO, with its upstream origination and trading operations linked to the downstream processing and distribution capabilities of COFCO and its affiliates in China to create a fully integrated value chain, consistent with COFCO’s strategy,” COFCO said.
A consortium of international investors led by private-equity firm HOPU Investments will join COFCO as minority co-investors in this acquisition. COFCO will hold two-thirds of the investment vehicle with the balance held by the HOPU-led consortium.
Frank Ning, chairman of COFCO, said: “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.”
Richard Elman, chairman of Noble Group, added: “We feel confident about our partnership with Cofco and believe that with the financial and business support of our new partners we will accelerate the execution of our strategy.”
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