Noble to sell 51% of agribusiness to Cofco
Move valuing unit at US$3.22b will result in an agribusiness joint venture
AFTER months of intense market speculation and a spin-off listing that did not materialise, Noble Group has finally agreed to sell a majority stake in its agricultural business to China's largest grain trader, Cofco Corp, in an all cash transaction that values the unit at US$3.22 billion.
The deal, widely seen as a move by Cofco to secure China's food security overseas, could improve Noble's balance sheet and help cut its earnings volatility as its agribusiness has been underperforming due to overcapacity in Chinese soybean crushing and sugar milling in Brazil.
"This reduces the impact of what has been the worst perform…
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