Saturday, September 25, 2010

The hydra never sleeps

"Amid such profound changes, the company that would result from a merger of Louis Dreyfus and Olam would dominate in several areas, particularly cotton – where it would be by far the largest trader and could face regulatory problems because of its size – rice, coffee, sugar and orange juice. It would be big in wheat and corn, and enjoy a top five position in oilseeds.

Geographically, Louis Dreyfus is strongest in Latin America and Europe, while Olam’s strengths are in Africa and Asia. The combined group would have a significant presence in the key agricultural commodity origination regions of Latin America and Africa and in Asia, which is developing as the significant area of demand growth.

“This would be a pure play agricultural commodity group that would have an unparalleled opportunity to emerge as a leading global player in the industry,” says a person with knowledge of the talks."

http://www.ft.com/cms/s/0/73571224-c805-11df-ae3a-00144feab49a.html

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