Abu Dhabi’s ADQ Buys 45% Equity Stake in Louis Dreyfus Company
Posted on 11/11/2020
Abu Dhabi Developmental Holding Company PJSC (ADQ) signed a deal to acquire an indirect 45% equity stake in Louis Dreyfus Company B.V. (LDC). As part of this transaction, LDC has also signed a long-term commercial supply agreement with ADQ for the sale of agri-commodities to the United Arab Emirates (UAE). Upon completion of the transaction, a portion of the proceeds of the sale amounting to a minimum of US$ 800 million will be invested into LDC to support the pursuit of the company’s long-term business plan and strategy, including the acceleration of strategic investments. Completion of the agreement is subject to customary closing conditions, including regulatory approvals.
“The transaction announced today constitutes a milestone in a decade-long strategy envisioned by the Supervisory Board, which started with the consolidation of LDC’s parent company’s shareholding,” said Margarita Louis-Dreyfus, Chairperson of the Supervisory Board of Louis Dreyfus Company Holdings B.V. in a press release. “We are delighted to welcome ADQ to our shareholder group as long-term partners and investors, with a common vision for LDC’s future, and experience that will bring further value to the business and support the Group’s ambitions.”
Louis Dreyfus Company is a merchant and processor of agricultural goods. Louis Dreyfus Company is one of the largest grain exporting houses. Its peers include Archer Daniels Midland, Bunge, and Cargill. Louis Dreyfus Company generated EBITDA of US$ 634 million in the first half of 2020, up 49.9% compared to the same period in 2019, despite the adverse impact of the change in fair value of Luckin Coffee shares. In 2020, Louis Dreyfus Company invested in aquatic feed research with Temasek Life Sciences Laboratory and Barramundi Asia, and in the creation of Covantis S.A., a technology company co-founded with industry peers to digitize agri-commodities trade.
Law firm Clifford Chance advised Louis Dreyfus Company on the deal.
Keywords: Louis Dreyfus Company Holdings B.V.
