COFCO, China’s largest food company, plans to acquire a 51% stake in Noble Group’s agricultural unit for $1.6 billion, which would place a total value on the unit of $3 billion. Noble is Asia’s biggest commodity trader by sales and Noble’s agricultural unit stores, processes, and trades sugar, grains, oilseeds, and cotton. The deal comes after COFCO agreed last month to buy a 51% stake in Dutch grain trader Nidera BV which has annual sales of more than $17 billion and which would give China greater access to the grain markets of South America. Both transactions mark China’s push to expand its food supplies and obtain food security for its population.
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