LONDON: Abu Dhabi-based ADQ has agreed to acquire a major stake in Louis Dreyfus (LDC) as part of an $800 million investment in the commodity trader.
The deal comes as the coronavirus pandemic re-focuses attention on food security among Gulf states which rely heavily on imports.
It also opens up the 169-year-old family-owned group that is controlled by billionaire Margarita Louis-Dreyfus, to major outside investment for the first time.
As part of this transaction, Louis Dreyfus also signed a long-term supply deal with ADQ for the sale of agri-commodities to the UAE.
LDC is one of the big four global commodity trading houses, posting profits of $126 million in the first half of the year.
Upon completion of the transaction, a portion of its proceeds amounting to a minimum of $800 million will be invested into LDC, ADQ said in a statement on Wednesday.
The acquisition price was not disclosed.
“Food and agriculture is an attractive, core sector for ADQ to generate financial returns and strengthen the economic cluster locally,” said ADQ CEO Mohamed Hassan Alsuwaidi. “As one of the world’s leading agri-commodities and food companies, LDC represents a strategic investment opportunity for ADQ.”
This latest investment expands the Abu Dhabi investment group’s agricultural portfolio which includes the recently formed Silal that aims to boost local food production in the UAE and Agthia, one of the region’s biggest food and beverage producers.
Earlier this year, ADQ also agreed to acquire 50 percent of Al Dahra Holdings, a multinational agribusiness group specializing in animal feed and essential food commodities.
“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 ambition,” said company Margarita Louis-Dreyfus in a statement.
Abu Dhabi fund boosts food security with $800m Louis Dreyfus deal
https://arab.news/r44uh
Abu Dhabi fund boosts food security with $800m Louis Dreyfus deal
- ADQ to acquire a major stake in Louis Dreyfus (LDC) as part of an $800 million investment in the commodity trader
- The deal comes as the coronavirus pandemic re-focuses attention on food security among Gulf states
Saudi investment pipeline active as reforms advance, says Pakistan minister
ALULA: Pakistan’s Finance Minister Mohammed Aurangzeb described Saudi Arabia as a “longstanding partner” and emphasized the importance of sustainable, mutually beneficial cooperation, particularly in key economic sectors.
Speaking to Arab News on the sidelines of the AlUla Conference for Emerging Market Economies, Aurangzeb said the relationship between Pakistan and Saudi Arabia remains resilient despite global geopolitical tensions.
“The Kingdom has been a longstanding partner of Pakistan for the longest time, and we are very grateful for how we have been supported through thick and thin, through rough patches and, even now that we have achieved macroeconomic stability, I think we are now well positioned for growth.”
Aurangzeb said the partnership has facilitated investment across several sectors, including minerals and mining, information technology, agriculture, and tourism. He cited an active pipeline of Saudi investments, including Wafi’s entry into Pakistan’s downstream oil and gas sector.
“The Kingdom has been very public about their appetite for the country, and the sectors are minerals and mining, IT, agriculture, tourism; and there are already investments which have come in. For example, Wafi came in (in terms of downstream oil and gas stations). There’s a very active pipeline.”
He said private sector activity is driving growth in these areas, while government-to-government cooperation is focused mainly on infrastructure development.
Acknowledging longstanding investor concerns related to bureaucracy and delays, Aurangzeb said Pakistan has made progress over the past two years through structural reforms and fiscal discipline, alongside efforts to improve the business environment.
“The last two years we have worked very hard in terms of structural reforms, in terms of what I call getting the basic hygiene right, in terms of the fiscal situation, the current economic situation (…) in terms of all those areas of getting the basic hygiene in a good place.”
Aurangzeb highlighted mining and refining as key areas of engagement, including discussions around the Reko Diq project, while stressing that talks with Saudi investors extend beyond individual ventures.
“From my perspective, it’s not just about one mine, the discussions will continue with the Saudi investors on a number of these areas.”
He also pointed to growing cooperation in the IT sector, particularly in artificial intelligence, noting that several Pakistani tech firms are already in discussions with Saudi counterparts or have established offices in the Kingdom.
Referring to recent talks with Saudi Minister of Economy and Planning Faisal Alibrahim, Aurangzeb said Pakistan’s large freelance workforce presents opportunities for deeper collaboration, provided skills development keeps pace with demand.
“I was just with (Saudi) minister of economy and planning, and he was specifically referring to the Pakistani tech talent, and he is absolutely right. We have the third-largest freelancer population in the world, and what we need to do is to ensure that we upscale, rescale, upgrade them.”
Aurangzeb also cited opportunities to benefit from Saudi Arabia’s experience in the energy sector and noted continued cooperation in defense production.
Looking ahead, he said Pakistan aims to recalibrate its relationship with Saudi Arabia toward trade and investment rather than reliance on aid.
“Our prime minister has been very clear that we want to move this entire discussion as we go forward from aid and support to trade and investment.”
