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Cargill bets on China with deal to buy another soya crush plant
[CHICAGO] Cargill, the world's largest agricultural commodities trader, is betting on China with the acquisition of a new soya-processing plant.
The agribusiness giant that's also America's largest privately-held company won a bid in judicial auction for the assets of Shandong Xinliang Oils & Fats Co, a spokesperson for Minneapolis-based Cargill confirmed on Tuesday. The final bid price was about US$62 million.
The move comes less than a year after the trader bought the 34 per cent stake it didn't already own in Hebei Jiahao Grain and Oilseeds Co, another soya bean processing plant in China, from its joint-venture partner. At the time, the company said it was committed to long-term development in the Asian nation.
The acquisitions are boosting Cargill's footprint in the world's top soya bean importer, which come at a time demand for soya bean meal, a key ingredient in animal feed, is on the rise. The hog herd in China, the top pork consumer, is recovering faster than analysts expected, increasing demand for feed.