Chinese Firm Said to Take Control of Brazilian Soybean Exporter - Bloomberg
▻http://www.bloomberg.com/news/articles/2016-05-02/chinese-firm-said-to-take-control-of-brazilian-soybean-exporter
China is so hungry for soybeans it’s said to have taken a major foray into expanding its control over supplies from Brazil, the world’s top exporter.
A unit of China’s Shanghai Pengxin Group Co. bought a controlling stake in Brazil’s soybean trader and biodiesel maker Fiagril Ltda for $286 million, said a person with direct knowledge of the matter, who asked not to be identified because the details of the deal haven’t been published. The deal would be the first major Chinese acquisition of an agricultural company in Brazil.
Growing Chinese appetite for meat has spurred increasing demand for the oilseed, which is crushed into meal for livestock feed. Soybeans are also turned into cooking oil and biofuel. China, the largest pork-eating country, is the world’s biggest buyer of the commodity and the nation’s imports have tripled since 2005. Prices have jumped 21 percent this year as unfavorable weather threatened South American supplies.
