COFCO and Noble Group to form agribusiness joint venture

A Hopu Investments-led consortium and COFCO, a Chinese state-owned food company, have signed a deal with Noble Group to establish an agribusiness joint venture (JV), Noble Agri.

As per the agreed terms, COFCO will acquire a 51% stake in the JV, while Noble will hold the remaining stake.

The Chinese firm will hold two-thirds of the investment vehicle, with the remaining held by the Hopu-led consortium.

In a statement, COFCO chairman Frank Ning said, "Noble Agri’s supply chain management system and origination capabilities complement COFCO’s logistics, processing, and distribution network in China.

"Incremental trade volumes from COFCO as a strategic investor will create significant synergy and value."

Noble Group chairman Richard Elman said, "We feel confident about our partnership with COFCO and believe that with the financial and business support of our new partners we will accelerate the execution of our strategy."

The JV is subject to relevant regulatory and shareholder approvals.

Ning will take on the role of chairman of Noble Agri, while Elman will become deputy chairman.

In the coming months, the parties will work closely to obtain the regulatory and shareholder approvals for the transaction.

Noble Agri is the agriculture division of the Hong Kong-based agricultural and energy products supply chain manager Noble Group.

It operates through three segments – grains and oilseeds, soft commodities and sugar.