COFCO plans to buy remaining shares of Noble Agri
COFCO expected to pay US$750 million for remaining 49 percent of Noble Agri shares
Two sources told Financial Times that said COFCO, which specializes in agricultural products including cereals and oils, is expected to pay another US$700 million to $750 million for the remaining 49 percent of stock rights of Noble Agri. The offer could increase up to US$ one billion provided that the business of Noble Agri enjoyed good performance. COFCO was not available for comment on the deal.
In October, 2014, COFCO purchased 51 percent shares of Noble Agri at a price of US$1.5 billion, according to public reporting. According to the Fortune Global 500, revenues of the Noble Group in 2014 totaled US$ 97.6 billion. Noble Agri is a joint venture between Noble Group and a consortium consisting of COFCO Corporation, HOPU Investment etc. The main business of the venture includes trading and processing of agricultural products. If the US$750 million purchase for the remaining 49 percent shares of Noble Agri was secured, it would give an advantage to COFCO which is ready to become one of the top food dealers in the world.