Miller Magazine Issue: 132 December 2020

16 NEWS MILLER / december 2020 Louis Dreyfus Company Holdings B.V. (LDCH) announced that the Group has signed an agreement to sell an indirect 45% equity stake in Louis Dreyfus Company B.V. (LDC) to ADQ, a large holding company based in Abu Dhabi. 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). LDC to enter into strategic partnership with ADQ “The transaction announced today constitutes a mi- lestone in a decade-long strategy envisioned by the Su- pervisory Board, which started with the consolidation of LDC’s parent company’s shareholding,” said Mar- garita Louis-Dreyfus, Chairperson of the Supervisory Board of LDCH. “We are delighted to welcome ADQ to our shareholder group as long-term partners and in- vestors, 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 trans- formative growth strategy to move towards greater va- lue chain integration – from producers to consumers,” said H.E. Mohamed Hassan Alsuwaidi, ADQ’s CEO. Established in Abu Dhabi in 2018, ADQ is one of the region’s largest holding companies with direct and in- direct investments in more than 90 companies locally and internationally. 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 pursuit of the company’s long-term business plan and strategy, including the acceleration of strategic investments. “Our strategy aims to leverage global consumption trends through investments in new business opportuni- ties, as the company embraces more of the agricultural value chain to become an increasingly integrated food, feed, fibers and ingredients company,” said Michael Gelchie, LDC’s Group CEO. “With a shared ambition for investment in innovations and technologies that can transform food and agricultural production, the invest- ment potential created by the long-term partnership with ADQ brings additional strength to the pursuit of LDC’s strategic growth plans, building on the strong performance delivered in the first half of 2020.” LDC remains focused on putting its strategy into ac- tion, while fulfilling its key role to keep essential food and feed supply chains moving, helping to ensure glo- bal access to food. “LDC will continue to leverage its core historic ca- pabilities to efficiently analyze and capture opportuni- ties in a rapidly changing context, while pursuing our vision to shape resilient food supply chains, guided by our purpose to create fair and sustainable value for the benefit of current and future generations,” added Mar- garita Louis-Dreyfus. “As we embark on the next stage of LDC’s development, we look forward to working with ADQ toward the realization of that shared vision.” Completion of the agreement is subject to customary closing conditions, including regulatory approvals.