China’s COFCO International completed its full acquisition of Dutch trader Nidera BV on 28 February.
COFCO bought 51% of Nidera in 2014 and then announced in August 2016 that it would acquire the remaining minority stake.
Nidera is a major international agribusiness, trading and originating grains, oilseeds, vegetables oils and oilseed meals. It also sells seeds and crop protection products and provides storage, handling, processing and ocean freight services.
The takeover of Nidera gives COFCO full ownership of two global agribusinesses – Nidera and COFCO Agri.
COFCO Agri was formed following COFCO’s buy-out of the Noble Group’s agricultural unit in March 2016 and trades and processes a wide range of agricultural products including grains, oilseeds, sugar, cocoa, coffee and cotton.
Jingtao (Johnny) Chi has been appointed the new CEO of Nidera effective immediately, having been named CEO of COFCO International and COFCO Agri earlier this year.
“Mr Chi will lead the teams towards the accelerated integration of Nidera and COFCO Agri into COFCO International,” COFCO said.
Before joining COFCO in 2003, Chi held various positions in China National Metals & Minerals Import & Export Corp, according to Reuters.
State-owned COFCO (China National Cereals, Oils and Foodstuffs Corporation) International is China’s largest edible oil producer and processor, with 13 oilseed processing plants and a crush capacity of more than 2M tonnes.
In recent years, COFCO has increased its acquisition of foreign assets in an attempt to create a global giant to rival the international ABCDs (ADM, Bunge, Cargill and Louis Dreyfus) (see ‘COFCO’s Global Expansion’, OFI January 2017). However, COFCO suffered several setbacks including losing about US$200M due to the actions of a rogue Nidera trader and then discovering a US$150M hole in the accounts of its Brazilian unit.