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Highlights
- Investment in leading global merchant and processor of agricultural goods will further strengthen ADQ’s food and agriculture investment portfolio and help accelerate strategic investments across LDC's value chain
- Long-term partnership between ADQ and LDC is expected to bring additional strength to the pursuit of LDC's strategic growth plans
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.
The investment in LDC further strengthens ADQ’s food and agri portfolio including Silal, which aims to diversify food sources and increase locally grown, raised and manufactured food; Agthia, which is one of the region’s leading food and beverages companies; and Al Foah, which specialises in date production and processing. Earlier this year, ADQ also signed an agreement to acquire a 50 percent of Al Dahra Holdings, a multinational agribusiness leader that specializes in animal feed and essential food commodities.
About ADQ
Established in 2018, ADQ is an active global sovereign investor with a focus on critical infrastructure and supply chains. As a strategic partner to the Government of Abu Dhabi, ADQ invests in the growth of business platforms anchored in the Emirate that deliver value to local communities and long-term financial returns to its shareholder. ADQ’s expanding portfolio has a total book value of USD 225 billion (as at 30 June 2024) and encompasses companies across numerous core sectors of the economy, including energy and utilities, transport and logistics, food and agriculture, and healthcare and life sciences.
For more information, visit adq.ae or write to media@adq.ae. You can also follow ADQ on Instagram, LinkedIn, and X.
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