Cargill buys 5 pct of Ukraine's Ukrlandfarming

KIEV Mon Jan 13, 2014 3:02am EST

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KIEV Jan 13 (Reuters) - Ukraine's leading agriculture group Ukrlandfarming said on Monday U.S. agriculture giant Cargill had bought 5 percent stake in the Ukrainian firm.

The deal took place in late 2013, Ukrlandfarming said in a statement, without disclosing the value of the stake.

Ukrlandfarming (ULF), Ukraine's major producer of eggs, grain, meat and sugar, said the two companies wanted to enhance and develop their relationship in search of significant business opportunities.

"The agreement with Cargill indicates an important step for Ukrlandfarming in developing our international presence and export potential," Ukrlandfarming CEO Oleh Bakhmatyuk said in a statement.

Several other projects, including logistics, are being discussed between Cargill and Ukrlandfarming, said the Ukrainian company, which has a London-listed offshoot called AvangardCo .

It said ULF was working with Cargill's grain division to satisfy Cargill's particular needs for grains in Ukraine, while Cargill for its part was providing financial terms to ULF which allowed Cargill to secure supply.

Cargill has been active in Ukraine for over 20 years, operating two big sunflower oil plants and several silos. The company is among the largest exporters of Ukrainian grains and sunflower oil.

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