SINGAPORE/HONG KONG Feb 27 COFCO Corp is in
advanced talks to buy a stake in Dutch grain trader Nidera, at
least two people familiar with the matter said on Thursday, in a
move allowing China to take further steps in securing food
The precise stake and the amount that China's largest
state-owned grain trader was looking to pay for Nidera was not
One person with knowledge of the matter told Reuters that
state-backed COFCO was willing to pay about $2 billion for
majority control of the privately run company.
The Wall Street Journal said last month that COFCO was in
talks to buy a minority stake in Nidera valued at around $250
million, citing a person familiar with the deal. The paper said
it was not clear how much COFCO was offering to pay.
China is looking for new sources of food supplies to feed a
rising shift in demand for high-protein products fuelled by
growing incomes. COFCO's purchase of a Nidera stake would give
it direct access to South American soybean, corn and wheat
COFCO did not respond to calls and email seeking
confirmation of the deal. Nidera did not immediately respond to
a call seeking comment.
(Reporting by Naveen Thakural and Denny Thomas; Additional
reporting by Chris Stebbins in Chicago and Sara Webb in
Amsterdam; Editing by Michael Flaherty and Himani Sarkar)