April 2, 2014

   
State-owned China National Cereals, Oils and Foodstuffs Corporation (COFCO) and mainland private equity firm Hopu Investment Management Co., Ltd. (Hopu) are buying a 51% stake in Noble Group's agribusiness division for US$1.5 billion, reported Wall Street Journal.

The two parties will form a joint venture, with Noble Group holding the remaining 49% stake.

The latest billion-dollar move by COFCO, which recently bought 51% stake in Dutch grain trader Nidera, vindicated China's determination to gain control over grain pricing and better access to major growing regions.

Noble Group is listed in Singapore and 15% owned by China's sovereign wealth fund - China Investment Corp. The group trades grains, oilseeds, cotton and distributes products in Asia and the Middle East.

According to Wall Street Journal, Hopu is a private equity fund originally set up by Goldman Sachs' China partner Fang Fenglei, and backed by Goldman and Singapore's Temasek Holdings.