Chinese carrier COSCO Shipholding will acquire a 5.8% stake in COFCO Fortune, a food processing and logistics unit owned by Chinese state-owned agricultural conglomerate COFCO. COSCO will pay RMB 5.5 billion (USD 813 million) for the stake, which will be sold as part of a capital-raising exercise by COFCO Fortune.
COSCO said the deal would allow the two companies to leverage their respective strengths in food shipping and production, safeguard food supply chains and find synergies between China’s domestic and foreign markets.
The parties intend to expand their end-to-end business cooperation, combining container yards, warehouses, shipping and rail transportation and other resources. They will also explore opportunities to strengthen cooperation in the investment, construction and operation of domestic and foreign port terminals.