Abu Dhabi wealth fund buys stake in Louis Dreyfus

One of the world’s largest commodities trading businesses, Louis Dreyfus Company (LDC), has sold a 45% stake to ADQ, an Abu Dhabi-based sovereign wealth fund.

The sale marks the first major overseas investment for ADQ, previously known as Abu Dhabi Development Holding Company.

To date, the fund has focused on domestic companies and its portfolio includes Abu Dhabi Airports and Abu Dhabi Securities Exchange.

However, in recent months ADQ has ramped up its investments in commodities, including the acquisition of a 50% stake in Al Dahra Holdings, an Abu Dhabi-based multinational agribusiness firm that specialises in animal feed and essential food commodities.

“The investment in LDC further strengthens ADQ’s food and agri portfolio including Silal, which aims to diversify food sources and increase locally grown, raised and manufactured food,” said ADQ.

The deal with ADQ is also the first time that the family-owned LDC has taken on a major shareholder outside of the family. The sale has been led by billionaire Russian heiress, Margarita Louis-Dreyfus, who inherited a majority share following the death of her husband Robert and then borrowed roughly US$1 billion to buy out other family members and build up a 96% share.

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