Louis Dreyfus (LDC) has announced that it has signed a binding agreement to acquire the remaining 83 per cent shares of Namoi Cotton that it doesn’t already own, by way of a Scheme of Arrangement.
"The proposed transaction reflects LDC’s long-term commitment to growing with Australia, promoting sustainable agricultural practices, supporting farming communities and contributing to local economic growth,” said Joe Nicosia, LDC’s Head of Cotton. “The addition of Namoi Cotton into our Australian cotton operations also aligns with LDC’s global strategy to reinforce its leadership in core merchandising activities – in this case by strengthening our service to local cotton farmers, through an expanded ginning and logistics footprint.”
Namoi Cotton is the leading cotton processing and supply chain business in Australia, with a ginning capacity of 1.6 million bales annually and an extensive network of origination and logistics operations across major growing regions, including 10 cotton gins as well as three warehouse facilities with a combined static capacity for half a million bales.
"As a longstanding partner of LDC for the past decade, we look forward to working closer with a leading global agribusiness and cotton merchant,” said Tim Watson, Namoi Cotton Executive Chairman. “With our combined capability, we will further develop our excellence in cotton processing and marketing, delivering additional value to Australian cotton growers.”
LDC currently owns a 17 per cent interest in Namoi Cotton and operates two joint ventures with Namoi Cotton, Namoi Cotton Alliance (NCA) and Namoi Cotton Marketing Alliance (NCMA).
The implementation of the Scheme of Arrangement is expected in mid-2024. The Scheme of Arrangement to acquire the remaining shares of Namoi Cotton is subject to a number of conditions which must be satisfied or, if applicable, waived. These conditions include regulatory approvals and approval by Namoi Cotton’s shareholders.