Louis Dreyfus Company (LDC) has acquired shareholding interests of Viterra’s former business from Bunge in Hungary and parts of Poland. The deal strengthens LDC’s grains & oilseeds operations in Europe.
Louis Dreyfus Company (LDC) has announced the conclusion of its transaction with Bunge for the purchase of shareholding interests of Viterra’s former business in Hungary and parts of Poland.
“The transaction reflects the group’s strategic plans to further reinforce its core merchandizing capabilities – in this case, for European grains and oilseeds origination, processing and distribution,” said Michael Gelchie, LDC’s Chief Executive Officer.
In Hungary, the transaction concerns the following activities and facilities:
• A state-of-the-art multi-seed (sunflower seeds, rapeseeds and soybeans) crushing and refining plant in Foktő that is one of Europe’s largest sunflower seed crushing facilities. Strategically located for origination within Hungary’s sunflower growing region, and for access to growing destination markets, the site also produces sunflower-based lecithin.
• Three grains and oilseeds storage and logistic sites in Debrecen, Gyomaendrőd and Berettyóújfalu, with combined storage capacity of approximately 150 KMT.
• A standalone grains and oilseeds trading and origination team in Budapest.
In Poland, the transaction concerns the following activities and facilities:
• A multi-seed (rapeseeds, sunflower seeds and soybeans) crushing and refining plant in Bodaczów, specialized in rapeseed processing and accounting for around 15% of Poland’s total rapeseed crush volume. The plant refines rapeseed oil for both the food and biodiesel industries, while rapeseed meal is sold mostly locally to feed compounders and animal protein producers.
• Four grains and oilseeds storage and logistic sites in Kętrzyn, Szamotuły, Trawniki and Werbkowice, with combined storage capacity of approximately 170 KMT, and some benefitting from railway connections. With extensive storage capacity, the silos are strategically located across the country and equipped to support origination and distribution programs for wheat, corn, rapeseed and other commodities.
• A standalone oilseeds trading and origination team in Gdansk.
“This development presents a strategic opportunity for LDC’s Grains & Oilseeds Platform to expand its business in a growing global sunflower market, reinforce its presence in the EU – in particular through increased exposure to the EU rapeseed complex, and enables LDC’s entry into Central European markets, including for the distribution of imported meals in the region and the development of grain origination along the Danube,” remarked André Roth, LDC’s Head of Grains & Oilseeds. “It also complements our existing grains and meals business in Poland.”
