Local Business

ADQ to acquire stake in Louis Dreyfus Company

Waheed Abbas/Abu Dhabi
Filed on November 11, 2020
KT file

Investment will further strengthen ADQ’s food and agriculture investment portfolio

Abu Dhabi-based holding company ADQ has acquired an indirect 45 per cent equity stake in Louis Dreyfus Company BV (LDC), a global merchant and processor of agricultural goods, for an undisclosed amount.

LDC chairwoman Margarita Louis-Dreyfus was searching for a new investor for the 169-year-old company for fresh funding to boost the company’s finances.

Under the long-term supply agreement between the two companies, Louis Dreyfus Company will supply sell agri-commodities to the UAE to ensure sustainable food supply for the country.

Upon completion of the transaction, a portion of its proceeds amounting to a minimum of $800 million will be invested into LDC to support the pursuit of the company’s long-term business plan and strategy, including the acceleration of strategic investments across the value chain, as the company evolves from its traditional role as an agri-commodities merchant to become an increasingly vertically integrated food, feed, fibres and ingredients company.

The agreement is subject to regulatory approvals.

Mohamed Hassan Alsuwaidi, CEO of ADQ, said food and agriculture is an attractive and core sector to generate financial returns and strengthen the economic cluster locally.

“As one of the world’s leading agri-commodities and food companies, LDC represents a strategic investment opportunity for ADQ. With a diversified agri-commodity portfolio, significant scale and broad geographic footprint, LDC will further accelerate the progress we have already made this year in significantly expanding ADQ’s food and agriculture portfolio,” he said.

Margarita Louis-Dreyfus, chairperson of Louis Dreyfus Company Holdings B.V., said the transaction constitutes a milestone in a decade-long strategy envisioned by the Supervisory Board, which started with the consolidation of LDC’s parent company’s shareholding.

“We are delighted to welcome ADQ to our shareholder group as long-term partners and investors, with a common vision for LDC’s future, and experience that will bring further value to the business and support the Group’s ambitions,” she added.

She stressed that LDC will continue to leverage its core historic capabilities to efficiently analyse and capture opportunities in a rapidly changing context, while pursuing our vision to shape resilient global food supply chains, guided by our purpose to create fair and sustainable value for the benefit of current and future generations. As we embark on the next stage of LDC’s development, we look forward to working with ADQ toward the realization of that shared vision.”


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