Armajaro Holdings, a UK-based conglomerate, is set to sell its soft commodities trading unit to Swiss firm Ecom Agroindustrial, for an undisclosed amount.
Both companies, which are engaged in coffee, sugar and cocoa commodities, have not disclosed the deadline for finalizing the deal.
The trading business posted a loss of $7.5m for the fiscal year ended September 2012.
Ecom CEO Andrew Halle said, "It moves us further down the path of being the leading integrated soft-commodity company."
As per the terms, Ecom coffee and cocoa deputy chief executive Alain Poncelet will take additional role of chief executive of the new company Armajaro Trading, while chief financial officer Mark Dendle will serve in the same role for the trading unit.
Following the transaction, Armajaro will be left with alternative-asset-management firm Armajaro Asset Management, while Ecom will gain control of supply chain of commodities across the world.
