Commodity trader Louis Dreyfus Corp is in talks to sell a stake to Abu Dhabi sovereign wealth fund ADQ, Bloomberg News reported on Friday, citing people familiar with the matter.
For the privately held company, which has been facing a challenging business environment, bringing external investors would be a first in its 169-year-old history. In 2019, LDC profits declined sharply, on low prices due to the impact of the U.S.-China trade war and the swine fever epidemic in China.
Louis Dreyfus declined to respond to Reuters’ request for comment, while ADQ was not available for comment.
Reuters in January exclusively reported that LDC was open to selling a large non-controlling stake to an external stakeholder, after a buyout of family minorities was finalised last year.
LDC, majority-owned by Margarita Louis-Dreyfus, is the “D” of the so-called “ABCD” quartet of global agricultural commodity traders that includes Archer Daniels Midland Co, Bunge Ltd and Cargill Inc.
ADQ, a state-backed holding company, has been acquiring businesses in the commodities and agriculture sectors. Its portfolio include the General Holding Corporation PJSC (Senaat), which has its subsidiaries trading in agri-food and industrial assets.
In May, ADQ also bought a controlling stake in Al Dahra Holding, an Abu Dhabi-based multinational animal feed and essential food commodities specialist firm.
Source: Reuters.com