Cofco considers minority stake purchase in Dutch Grain Trader Nidera

Cofco, China’s state-owned food company, is seeking to acquire a minority stake in the Netherlands-based grain trader Nidera.

The Chinese food giant’s move is in line with its strategy to purchase overseas assets in order to secure access to resources.

The Wall Street Journal cited a source familiar to the deal stating that last month, Cofco placed a binding bid for the stake, which is valued at $250m.

Established in 1920, Nidera is a privately held commodity service and solutions provider for the global agricultural markets, offering grains, oilseeds, vegetable oils, oilseed meals, agricultural inputs and bio-energy products.

The company is engaged in processing, merchandising, trading, handling, storage and shipment of agricultural commodities and bio-energy products, and employs approximately 3,800 people across its global operations.

The acquisition would provide Cofco with access to grain-producing areas in Latin America.

In the recent years, Cofco has preferred buying smaller assets overseas.

In 2011, the company acquired Australian sugar producer Tully Sugar in a $145m deal, and it also bought vineyards in Chile and France.

---

Image: The acquisition would provide Cofco with access to grain-producing areas in Latin America. Photo courtesy of amenic181 / FreeDigitalPhotos.net.