Cargill, the US-based agriculture trading group, has doled out $200 million for a stake in UkrLandFarming, Ukraine’s largest agribusiness holding, in a potentially far-reaching deal that sources said would see both groups partner up in future grain exports to China and other growing markets.
The deal, for 5 percent of the holding, boosts Cargill’s already strong trading presence in one of the world’s most promising agriculture commodity producers. It comes amid reports that China was increasingly rejecting imports of genetically modified US corn as it stepped up organic purchases from Ukraine.
The transaction puts a value of $4 billion on UkrLandFarming, the world’s eighth-largest land cultivator and second biggest egg producer through its 77 percent ownership in London-listed Avangardco.
The conglomerate was founded and built up in recent years through acquisitions by Oleg Bakhmatyuk, a Ukrainian billionaire.
“The transaction will help Cargill secure long-term supplies from one of Ukraine’s largest farmers, and gives UkrLandFarming a very strong strategic partner that will help them achieve their goals of broadening exports, especially in Asia,” said Nick Piazza, chief executive of Kiev-based investment bank SP Advisors.
