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07
2023
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01
COFCO accelerates global industrial layout
On March 23, 2014, China National Cereals, Oils and Foodstuffs Corporation (COFCO) and Nidera, a leading Dutch agricultural products and commodities trading group, officially signed an agreement for COFCO to acquire 51% of Nidera, establishing a strategic partnership between the two companies.
On April 2, 2014, COFCO announced the acquisition of a 51% stake in Laibao Agriculture, a subsidiary of the Hong Kong-based Noble Group, a global agricultural supply chain manager, and the establishment of a 51% and 49% joint venture.
By taking a stake in Nidera and a joint venture with Laibao, Ning Gaoning, chairman of COFCO, who has a long history of merger and acquisition integration, is gradually putting together a map of COFCO's overseas expansion. Ncdera, with a 94-year history, is mainly engaged in the procurement, distribution and trade of grains, oil and oilseeds, agricultural input products and bioenergy products, and sells its products to more than 60 countries worldwide.
Leybold specializes in sourcing from low-cost production locations such as Brazil, Argentina, Indonesia and Australia and shipping to high-demand markets such as China, India and the Middle East, adding value and extracting profits in the process. Leybold also has a complete global network of sourcing, storage, sales, transportation and trading.
With these two transactions, COFCO will be able to connect domestic and international markets through complementary resources, and establish a stable grain corridor in the origin of global grain and in the emerging markets of Asia, which have an incremental global demand for grain, to meet China's moderate demand for grain imports and at the same time to compete internationally with ADM (Archer Daniels Midland), which is also known as one of the "ABCD" four major grain merchants. Archer Daniels Midland, Bunge, Caril and Louis Dreyfus Commodities are in direct competition internationally.
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