Namoi Cotton is Australia’s largest ginner, and its sites include Merah North, west of Wee Waa in north-west NSW. Photo: Namoi Cotton

LOUIS Dreyfus Company Asia today announced it has signed a binding agreement to acquire the remaining 83 percent shares of Namoi Cotton Limited by way of a scheme of arrangement, marking a significant milestone in LDC’s 111-year history in Australia.

“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,” LDC head of cotton Joe Nicosia said.

“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.”

A pioneer in Australian cotton since 1962, 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 in New South Wales and southern Queensland.

It also has three warehouse facilities with a combined static capacity for 500,000 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,” Namoi Cotton executive chairman Tim Watson said.

“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 17pc interest in Namoi Cotton and operates two joint ventures with Namoi Cotton: Namoi Cotton Alliance and Namoi Cotton Marketing Alliance.

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.

LDC was founded in 1851, and its activities span the entire value chain across commodities including: coffee, grains, oilseeds, rice and sugar, as well as cotton, and food, feed, and freight.

LDC originates, processes and transports around 80 million tonnes of product per annum, and employs approximately 17,000 people globally.

LDC’s bid for Namoi Cotton was announced in November.

Source: LDC