Linklaters has advised Noble Group Limited (“Noble Group”) on the acquisition of 51% of Noble Agri Limited (“Noble Agri”) by COFCO Corporation (“COFCO”) to establish a 51%/49% joint venture.
Noble Agri will become the principal international origination platform for COFCO, with its upstream origination and trading operations linked to the downstream processing and distribution capabilities of COFCO and its affiliates in China to create a fully integrated value chain, consistent with COFCO’s strategy.
The transaction values Noble Agri equity at 1.15x 2014 book value. As at 31 December 2013, Noble Agri had shareholders’ equity of US$2.8 billion and net debt of US$2.5 billion.
Christopher Kelly, one of the lead partners on this transaction commented:
“We have been advising Noble Group over the last decade on its most significant and strategic transactions and this is one of its most important to date. This transaction is emblematic of the increasing importance of the agricultural sector to global M&A, as companies and governments look for new ways to tap into trade flows in that space around the world. A key part of that phenomenon is the more efficient delivery of agricultural products to the geographies where we are likely see the greatest demand growth.”
He then added “It is always a pleasure to work with Noble Group because of the professional manner in which they execute deals and this transaction was no exception.”
The Linklaters M&A team was led by Corporate partners Christopher Kelly and Peggy Wang, assisted by managing associate Ben Burger and associates Tess Fang and Ling Li Chong. The Linklaters competition team was led by partner Clara Ingen-Housz, assisted by associate Anna Mitchell. The transaction is still subject to antitrust approvals.
