Chinese food establishment Cofco is exploring deals for possible acquisitions or partnerships in the US, a move that could provide the company with access to the world’s largest source of corn and a top soybean grower.
Cofco North America head Paul Liu was quoted by The Wall Street Journal as saying: "We want to get more involved in other parts of the world, especially in the Americas, where a lot of the grain is grown, shipped and exported to other markets like China."
The company is geared up to compete with US grain and meat giant Cargill. It has begun sending feelers to U.S. companies on potential deals to secure American ports and grain terminals, giving it better access.
Cofco, which owns food-producing assets on five continents, had invested around $2.7bn to acquire Dutch grain trader Nidera and 51% of Noble Agri in 2014, securing a foothold in the breadbasket regions of South America and central Europe.
The recent deals have pushed Cofco into competition with Cargill, Archer Daniels Midland and France's Louis Dreyfus Group.
Cofco officials further added that the company has access to deep state coffers, providing $10bn for acquisitions.
Upon completion of Noble and Nidera deals, Cofco generated around $63.3bn in revenues in 2014, which is, however, less than the world's three larger agribusiness giants.
Cofco offers a wide range of food products including kitchen food, such as flours, meat products, and oils; snacks, including chocolates; instant food; wines and spirits, such as rice wines; dairy products, including milk; functional foods, such as flour and meat products; and beverages, such as China tea.
