Louis Dreyfus to buy Chinese oilseed firm from Singapore’s Golden Agri

Image sourced from the Louis Dreyfus Company

Global trading house Louis Dreyfus Company is to buy an oilseed crushing and vegetable oil refining business in China from Singapore-based Golden Agri-Resources, extending its presence in the world’s biggest oilseed importing country.

A Louis Dreyfus subsidiary is to buy Sinarmas Natural Resources Foodstuff Technology (Tianjin) Co. from a subsidiary of Golden Agri-Resources on the basis of an enterprise value of $111 million, Golden Agri-Resources said in a filing on Monday. The final price is subject to adjustment, the filing said.

The business being acquired by Louis Dreyfus owns and operates oilseed crushing and refining facilities in the northeastern Chinese port city of Tianjin.

Dreyfus is one of the so-called ABCD group of merchants alongside Archer Daniels Midland, Bunge , Cargill that have long dominated global trade in agricultural commodities.

Like its rivals, Dreyfus has been grappling with declining margins linked to high levels of supply and reduced price volatility, leading it to spin off some businesses and focus on core activities including grains and oilseeds.

A Louis Dreyfus spokeswoman said the deal reflected the group’s confidence in the Chinese agricultural processing sector, without giving further financial details.

The ABCD merchants are facing competition from China’s state-owned COFCO Corp, whose international trading arm is looking to expand direct sourcing from farmers worldwide and reduce its reliance on foreign trading houses.

Golden Agri-Resources, which is one of the world’s largest palm-oil plantation owners, said the sale was a strategic decision to sell a non-core oilseed asset.

The agreement is subject to regulatory approval.

Reuters

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.