World Grain - March 2014 - 12

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COFCO, Nidera form partnership
BEIJING, CHINA - COFCO Corporation, the largest grain, oil and
foodstuff company in China, and Nidera, a global commodity trader
and agribusiness company headquartered in the Netherlands, on Feb.
28 signed an agreement, pursuant to which COFCO will acquire 51%
of Nidera to establish a strategic partnership. Nidera, a major player
in the international agricultural market, has an annual turnover in
excess of $17 billion.
The transaction will provide Nidera with great potential for
growth in the Chinese market and also strengthen COFCO's position
as a key player in the global agricultural industry through access to
Nidera's global origination and trading network and its fast growing
seed business, the companies said.
"We are delighted to reach a win-win agreement with Nidera. Nidera has a strong origination platform in Brazil, Argentina and Central Europe as well as a global trading network, which can further
extend COFCO's global presence and create new opportunities,"
said Patrick Yu, president of COFCO. "COFCO is fully committed to

supporting Nidera's future development through COFCO's competitive edge in trading, processing, branding and distribution."
"This deal will generate great growth opportunities. The Chinese and
Asian market share is of great importance to Nidera," said Ton Van Der
Laan, chief executive officer of Nidera. "We were looking for a strong
partner to jointly invest in future growth, and a strategic partnership with
COFCO is an ideal choice for Nidera and will benefit both sides."
"Investing in Nidera is inline with COFCO's strategy to become
a global player in the agricultural industry with a fully integrated
value chain and represents a significant step toward COFCO's global
expansion," said Frank Ning, chairman of COFCO.
In the coming months both COFCO and Nidera will work together
to obtain regulatory approvals to close the transaction. According to
the agreement, the existing shareholders of Nidera will all remain as
shareholders of the company and the current leadership and management of Nidera will stay to secure a smooth integration and successful partnership.

Sumitomo acquires Emerald Agribusiness Group
SYDNEY, AUSTRALIA - Sumitomo Corp. announced on Feb. 6
that it has acquired Emerald Agribusiness Group Pty Ltd (EAG) and
the 50% of Emerald Grain that was owned by the directors and staff
of Emerald Grain. This purchase will see Sumitomo move to 100%
ownership of Emerald Grain after having originally been invited by
EAG to purchase 50% in 2010.
Alan Winney, chairman of Emerald Grain and of EAG, said that it
was the right time for the sale of the remaining 50% of the business
to Sumitomo Corp., and that it was the next logical step to allow the
ongoing growth of the company.
"As a 100% subsidiary of Sumitomo Corp., the company will be
able to fund future growth and expansion and compete more effectively in an Australian and Asian grain market that is now heavily
influenced by global companies," he said.
Emerald Grain was established as a startup in 2004 to create a
grower-focused grain marketing alternative for Australian grain
growers. Since then it has grown to become a leading home-grown
integrated grain marketing and storage company. The company's
revenue is approximately A$1.6 billion per year. It markets 4.5
million tonnes of Australian grain each year domestically and to
35 countries around the globe. It services the needs of more than
10,000 Australian grain growers with grower service personnel
located in 27 towns in key grain growing regions Australia-wide.
It operates joint ventures with grower companies and co-operatives in New South Wales and Victoria; and it has established
in its own storage, transport and logistics infrastructure through
its acquisition of the Melbourne Port Terminal and its upcountry
storage and rail network.
Winney said that this new ownership structure will give Emerald
Grain access to the significant capital needed to help fund expansion
in grain accumulation capability and processing assets. It will allow
Emerald to leverage Sumitomo business assets and networks, ulti12

mately providing greater value and additional services to Australian
grain growers.
Sumitomo has a long history of investing in food and agribusiness
in Australia. It first entered the Australian grains sector when it acquired ABA in January 2005. Emerald Grain then merged with ABA
in March 2012 to create an integrated grain supply chain in south
eastern Australia.
Sumitomo Corp. has expressed a strong commitment to expanding
its food and agribusinesses footprint in Australia and globally. This
acquisition of Emerald Grain is an important part of that strategy.
Sumitomo Corp. General Manager of Grains & Oilseeds and Emerald Director Hiro Kurosaki said Sumitomo intends to run Emerald
Grain as an independent subsidiary, under the same name and with
the same chief executive and the existing strong management team.
"We are very proud to have Emerald Grain 100% owned and as
part of the Sumitomo Corp. It is a strong business that has seen rapid
growth and built enduring relationships with growers and grain consumers over many years. It enjoys a unique market position being
the only grain marketing company with local grain merchants in all
grain growing regions of Australia, and its own supply chain network
in southeastern Australia, including the port facility at the Port of
Melbourne," he said.
"Emerald Grain will continue to be a brand that represents superior Australian grain," he said. "Under the new ownership structure
Emerald Grain will be well positioned for additional grain and food
processing opportunities in Australia and internationally, working
alongside its sister companies in Sumitomo."
Chairman Alan Winney, and his other two founding directors,
Mike Chaseling and Mick Cattanach, will step down from their existing roles at the time of sale completion and will be replaced by Sumitomo Corp. representatives on the Emerald board. John Murray was
appointed chief executive in July 2013 and will continue in that role.
March 2014 / World Grain / www.World-Grain.com

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World Grain - March 2014

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