March 12, 2007

China soy crusher wary of selling stake to foreign investors
 

China's major soy crusher Jiusan Oil & Fats Co. Mar 8 said it was not considering selling a stake to large foreign agribusinesses Cargill, Archer Daniels Midland Co.and Bunge, in response to a media report stating the contrary.

In Jiusan's statement to Reuters, General Manager Tian Renli said the three agribusinesses giants did not meet the company's criteria regarding foreign investors despite expressing interest.

Tian explained that while Jiusan does not totally shut out foreign investments, the local government of Heilongjiang province where Jiusan is based must continue to have a controlling stake as a precondition. Additionally, Jiusan must be able to source its soybeans independently and the investor is not a competitor in the meal and oil markets.