ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy, announced today that it has signed an agreement to acquire an indirect 45 percent equity stake in Louis Dreyfus Company B.V. (LDC), a leading global merchant and processor of agricultural goods. As part of this transaction, LDC also signed a long-term commercial supply agreement with ADQ for the sale of agri-commodities to the United Arab Emirates (UAE).
As one of the world’s top global players in the agri-commodities sector, LDC is engaged in sourcing, processing, storing, transporting and merchandising agricultural commodities worldwide, thanks to its diversified portfolio and global presence. LDC posted net sales of US$16.3 billion and EBITDA from continuing operations of US$634 million for the first half of 2020.
Upon completion of the transaction, a portion of the proceeds 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 across the value chain, as the company evolves from its traditional role as an agri-commodities merchant to become an increasingly vertically integrated food, feed, fibres and ingredients company. Completion of the agreement is subject to customary closing conditions, including regulatory approvals.