By Cassie Hough Thursday, 17/01/2013
Global commodity trader Louis Dreyfus has agreed to join with Namoi Cotton in a deal worth $34 million. Namoi Cotton would continue to own and operate the existing cotton ginning and seed businesses; the joint venture would relate to packing and marketing the crop.
Namoi Cotton would hold a 51 per cent controlling interest. Its chief executive Jeremy Callachor says it's hoped the move will strengthen the co-operative's balance sheet. "We would like to think that the joint venture would start at our historical levels of around one third of the Australian crop but certainly we would be looking to grow our market share as we move forward with the joint venture." The deal still need approval from Namoi Cotton grower members by special postal ballot expected to be completed by the end of February, 2013. (Source: ABC Rural)