U.S. agribusiness giant Cargill said it bought a stake in a grain terminal in Russia’s port of Novorossiisk to bolster its access to export facilities in the Black Sea.
Cargill, one of four so-called “ABCD” companies that dominate the flow of agricultural goods around the world, has purchased 25 percent plus one share of indirect interest in the grain terminal Kombinat Stroykomplekt (KSK) from privately held Russian firm Deloports Limited.
“It is our first investment in a Russian port on the Black Sea and will strengthen our offering to the market, providing a channel to connect our Russian grain operations to the rest of the world,” said Andreas Rickmers, head of Cargill’s grain and oilseeds operations in Europe, in a statement.
Cargill and Deloports, which still holds a 75 percent stake in KSK, declined to disclose the value of the deal. KSK refinanced a $52 million loan from Russian state bank VTB.
The KSK terminal has the capacity to handle 3.5 million tons of grain a year. Cargill plans to use a portion of that capacity, while the remaining volume will be available to the market.
The port will add to Cargill’s global network of grain and port facilities, including a joint venture in the Romanian port of Constantza on the Black Sea, the trader added.
The other ABCD companies are Archer Daniels Midland Co , Bunge Ltd and Louis Dreyfus. (Reuters)