ADQ Holdings signed an indirect acquisition agreement for a 45% stake in Louis Dreyfus, a company specialized in trading and processing agricultural commodities.
According to the Emirates News Agency, Louis Dreyfus Company, as part of this deal, also signed a long-term commercial supply agreement with the holding to sell agricultural commodities to the UAE.
Louis Dreyfus is one of the largest global trading companies in the agricultural commodities sector, providing supply, processing, warehousing, transportation and trade services worldwide, thanks to its diversified business portfolio and presence. Global, where the company succeeded during the first half of 2020 in recording net sales of $ 16.3 billion before accounting for interest, taxes, depreciation and depreciation from its continuous operations of $ 634 million.
With the completion of this transaction, a portion of the proceeds amounting to a minimum of $ 800 million will be invested in Louis Dreyfus to support the company's long-term business plan and strategy, including In this, the acceleration of strategic investments across the value chain, as the company has evolved from its traditional role in agricultural commodities trade, to become a more integrated company in the field of food, feed, fiber and food ingredients .. The completion of the agreement is subject to the usual terms, which include regulatory approvals.
His Excellency Mohamed Hassan Al-Suwaidi, CEO of the Holding / ADQ / said: The food and agriculture sector is an essential and attractive sector for investments for the Holding / ADQ / in order to achieve financial returns and enhance System of the economic sector locally .. As one of the leading international companies in the field of agricultural commodities and food, investing in Louis Dreyfus Company represents a strategic investment opportunity for the Holding / ADQ / .. The diversified portfolio of agricultural commodities, and the expansion of Louis Dresvos's business globally, will contribute In accelerating the remarkable progress we have already made during this year in expanding our business portfolio in the food and agriculture sector.
Al Suwaidi added: We are partnering with Louis Dreyfus, which has a future development vision for our business, and we look forward to cooperating with the existing shareholders and its management team to take advantage of new opportunities in the sector by accelerating Its strategy for development and growth, to advance towards better integration along the value chain from producers to consumers.
For her part, Margarita Louis-Dreyfus, Chairman of the Supervisory Board of Louis Dreyfus Holdings BV, said: This deal, announced today, constitutes a milestone in a strategy that extends Over a decade set by the Supervisory Board, and it began since the consolidation of the shareholding of the company that owned Louis Dreyfus, and we are pleased to welcome the holding of ADQ to our group of shareholders to be a partner and investor ...
