Russia. China planning to acquire 25% of a grain terminal in Novorossiysk

hina’s COFCO wants to buy 25% of a grain terminal from Delo Group in Novorossiysk. The terminal’s grain handling capacity equals 3.5 MMT a year. It is the third largest in Russia. Cargill owns 25% minus one share in the company.

COFCO has no grain handling facilities in Russia, therefore it is considering the possibility to buy the assets. In the grain market, the terminal’s value is estimated at USD 100-150 Ml. Correspondingly, a 25% stake in it could cost China USD 25-37.5 Ml, reports UkrAgroConsult.