Land Commodity M & A Options Food Replaces Oil

The land commodity merger and acquisition option grain replaces oil.

Press time: 2014/05/30 11:21 Latest update: 2014/05/30 11:21

(Central News Agency, Taipei, 30th) Bloomberg reported that mainland China has spent more than US $200 billion in the past 10 years after acquiring mines and oil fields in Argentina and Australia. The focus now turns to food.

The mainland, the most populous country, is now facing a grim fact: for every extra pound of wheat or pound of beef produced in the world, the mainland needs almost half to feed its people.

According to data compiled by Bloomberg, after recognizing that the country cannot produce enough grain and meat, companies listed in mainland China or Hong Kong spent a total of US $12.3 billion last year to launch overseas mergers and acquisitions in food, beverages or agriculture, rewriting the highest amount in at least 10 years.

The deals include Continental's largest-ever U.S. acquisition, with Shuanghui International Holdings buying Smithfield Foods Inc. for $7 billion. According to the National Australia Bank Ltd., overseas acquisition targets for mainland companies are likely to be beef, lamb and grain assets.

Cargill (Cargill Inc.) Vice Chairman Conway (Paul Conway) said, "these transactions are bound to happen, in fact, I'm a little surprised that these did not happen earlier. 」 "In agricultural products, the integration of the continental and global commodity systems will be closer than before. 」 Cargill is one of the four largest companies that currently control the global food trade.

When the mainland's economy exploded in the past few decades, the Beijing government used state-owned enterprises to lead the way to accelerate strategic industries and became a model.

In the past, this has happened in energy security, with China National Petroleum Corporation (HK-857) spending $40 billion on oil assets around the world over a 10-year period.

The new champion is COFCO, which controls 90% of the mainland's wheat imports and has launched two acquisitions in the past year.

COFCO has acquired Nidera HoldingsBV and Noble Group Ltd in the Netherlands within 2 months. controlling interest, paying a total of about $2.8 billion.

Fitch Ratings Ltd. said in an April 3 report that COFCO will be a strong global agricultural trader, able to purchase directly around the world. (Translator: Liu Shuqin, Central News Agency) 1030530
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