UAE's ADQ to buy 45% of commodity trader Louis Dreyfus amid food security push

Dubai — The UAE's ADQ group will buy an indirect 45% stake in Louis Dreyfus Co., one of the world's largest commodities trading companies, which also inked a long-term supply agreement to the Gulf state, both companies said Nov. 11.

A portion of the proceeds of the sale, amounting to a minimum of $800 million, will be invested in LDC to support its "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, fibers and ingredients company," ADQ said in a statement.

Other details were not disclosed.

"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," Margarita Louis-Dreyfus, chairperson of the supervisory board of LDC, said in a separate statement.

ADQ, an Abu Dhabi-based conglomerate, has been on a hunting spree as part of a food security drive in the UAE that accelerated with the outbreak of the coronavirus pandemic this year.

"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," ADQ said.

Also in 2020, ADQ signed an agreement to acquire a 50% of Al Dahra Holdings, a multinational agribusiness firm that specializes in animal feed and essential food commodities.