Grindrod to buy certain Seaboard Corp. commodity, milling arms
Durban-based shipping and logistics company Grindrod Ltd. has reached agreement with Seaboard Corp.’s commodity trading and milling segment to acquire certain third party commodity trading operations for an undisclosed amount. The deal is expected to be completed Friday.
Grindrod will house the purchased trading and shipping operations in a new operation called Atlas Trading & Shipping.
Seaboard said the operations being sold to Grindrod posted revenue of about $140 million in the first quarter and $630 million for 2004. “The sale of this portion of Seaboard’s business will enable Seaboard to focus on its core milling operations,” Seaboard said in statement.
Grindrod said the deal will increase its turnover to over rand6 billion ($911 million).
“This acquisition is the beginning of the development of a commodity trading arm within the Grindrod stable and is a valuable addition as it will complement current shipping operations,” said Ivan Clark, Grindrod’s managing director.
Grindrod is undertaking a strategy to boost its land-based businesses, earmarking about rand1 billion ($151 million) for investment in land side operations. Recently it has purchased a 50-percent stake in Sheltam Rail and a 72-percent stake in African Portland Industrial, which controls the Maputo and Walvis Bay coal terminals.