China's sovereign wealth fund is buying a US$850-million (Bt28.6-billion) stake in Noble Group, one of Asia's biggest trading houses, to expand its commodities investments.
China Investment Corp (CIC), which manages a portion of Beijing's $2 trillion in foreign currency reserves, will own 12.91 per cent of Noble after the deal, Hong Kong-based Noble said in a statement.
Chinese companies, flush with cash from the country's economic boom, are investing abroad in mining, oil, agricultural commodities and other resources in hopes of profiting from future increases in demand.
Noble and CIC plan to jointly invest in infrastructure assets and supply chain management related to Noble's agricultural activities, the statement said. Noble's assets range from Australian iron mines to Brazilian sugar mills and cocoa processing in Africa.
Noble, whose shares are traded in Singapore, reported $36 billion in 2008 revenues but profit has been hurt by the decline in commodities prices, falling 33 per cent in the quarter ending on June 30 from a year earlier.
Among its other recent resource deals, CIC paid $1.5 billion in July for a 17-per-cent stake in Canadian mining Teck Resources LTd.
ON THE NET:
www.thisisnoble.com
China Investment Crop will own 12.91% of Noble. Noble's assets range from Australian iron mines to Brazilian sugar mills and cocoa processing in Africa.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment