ADQ, a state-run Abu Dhabi holding company, is buying an indirect 45% stake in Louis Dreyfus Company (LDC), one of the world’s top agri-business firms.
As part of the 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).
“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. “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.”
“As one of the world’s leading agri-commodities and food companies, LDC represents a strategic investment opportunity for ADQ, in line with our long-term food and agriculture investment strategy. We share LDC’s vision for future growth of the business, and look forward to partnering with LDC’s existing shareholders and management team to capitalise on the sector’s emerging opportunities, by accelerating LDC’s transformative growth strategy to move towards greater value chain integration – from producers to consumers,” said Mohamed Hassan Alsuwaidi, ADQ’s CEO.
Upon completion of the transaction, a portion of the proceeds of the sale amounting to a minimum of $800m 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.
“Our strategy aims to leverage global consumption trends through investments in new business opportunities, as the company embraces more of the agricultural value chain to become an increasingly integrated food, feed, fibres and ingredients company,” said Michael Gelchie, LDC’s group CEO. “With a shared ambition for investment in innovations and technologies that can transform food and agricultural production, the investment potential created by the long-term partnership with ADQ brings additional strength to the pursuit of LDC’s strategic growth plans, building on the strong performance delivered in the first half of 2020.”