ADQ, a large holding company based in Abu Dhabi, is buying an indirect 45% equity stake in Louis Dreyfus Company (LDC), one of the world’s top agri-business firms.
As part of this transaction, LDC has also signed a long-term commercial supply agreement with ADQ for the sale of agri-commodities to the United Arab Emirates (UAE).
“The transaction announced today constitutes a milestone in a decade-long strategy envisioned by the Supervisory Board, which started with the consolidation of LDC’s parent company’s shareholding,” said Margarita Louis-Dreyfus, chairperson of the supervisory board of LDCH. “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.”
ADQ’s broad portfolio of major enterprises spans multiple sectors, among them food and agriculture. As part of its strategy for the sector, the company seeks to generate financial returns and strengthen the economic cluster in the UAE.
“As one of the world’s leading agri-commodities and food companies, LDC represents a strategic investment opportunity for ADQ, in line with our long-term food and agriculture investment strategy. We share LDC’s vision for future growth of the business, and look forward to partnering with LDC’s existing shareholders and management team to capitalize on the sector’s emerging opportunities, by accelerating LDC’s transformative growth strategy to move towards greater value chain integration – from producers to consumers,” said H.E. Mohamed Hassan Alsuwaidi, ADQ’s chief executive officer.
Upon completion of the transaction, a portion of the proceeds of the sale amounting to a minimum of US$800 million will be invested into LDC to support the company’s long-term business plan and strategy, including the acceleration of strategic investments.