CS Agriculture, backed by Shangdong Ruyi and Australian wool trader Lempriere Group, which bought Cubbie Station for $232 million, has now acquired the Dirranbandi ginnery in Queensland from Olam International for in-excess of $20 million. This purchase, added to the purchase of Cubbie Station by CS Agriculture is the next step for the company’s plan of vertical integration in the industry. Previous discussions had been held between Olam and CS about a possible joint venture at the ginnery, and CS had also planned construction of its own ginnery at Cubbie. Upon approval for the project, Olam and CS began discussions once again which concluded with the purchase of the Dirranbandi ginnery.
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