Cargill, one of the largest manufacturers and sellers of food, agricultural, and industrial products, as well as a financial services company, has become the largest shareholder in Ukrainian businessman Oleh Bakhmatiuk’s Ukrlandfarming agricultural holding company in Eurasia. The press service of Ukrlandfarming announced this to the CFTS after news of the deal was published by the Financial Times newspaper.
Cargill acquired a 5% stake in Ukrlandfarming at the end of 2013, the company said.
According to the head of Ukrlandfarming’s board of directors, Oleh Bakhmatiuk, Cargill and Ukrlandfarming operate on the same market – in the area of ensuring the world’s food security. "Synergy of the two powerful players will allow significant improvement of the opportunities and prospects of the agriculture and food industry worldwide. This is an important step in the development of the export and investment potential of not only Ukrlandfarming, but also Ukraine as a whole. The new stage of cooperation will help to develop our relations through the new opportunities that are opening up for joint business, which are beneficial to both sides. I am confident that this is only the beginning of an important and successful journey together," said Bakhmatiuk.
Ukrlandfarming is already working with Cargill’s grain division to meet the international company’s requirement for deliveries of 1-1.5 million tons of grain from Ukraine per year. Cargill, as a financial partner of Ukrlandfarming, ensures confidence in the reliability, timeliness, and quality of such deliveries. The two companies are also discussing development of projects in other sectors, including the logistics sector, and international cooperation. In particular, this involves mutual support when Ukrlandfarming enters the Asian market, including the Chinese market.
The companies are also discussing development of projects in other sectors, including the logistics sector
Cargill does not intend to interfere or otherwise get involved in the operations of Ukrlandfarming. The two parties have agreed to keep details of the deal confidential.
Ukrlandfarming is the largest agro-industrial holding company in Ukraine. It engages in cultivation of crops and seeds, production of eggs and egg products (Avangardco IPL), production of sugar, livestock farming, production of meat, and distribution of agricultural machinery. Ukrlandfarming’s revenues and EBITDA reached USD 1.9 billion and USD 0.8 billion, respectively, in 2012.
Cargill is an international producer and supplier of food, agricultural, and industrial goods, as well as a provider of financial services. Founded in 1865, the company currently has 142,000 employees in 67 countries. Cargill earned USD 2.31 billion in the fiscal year 2013. Its revenues totaled USD 136.7 billion.