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    COFCO takes over grain and logistics company

    Updated: 2013-03-13 19:20
    By Li Woke ( chinadaily.com.cn)

    China's largest food processing company, China National Cereals, Oils and Foodstuffs Corporation, will take China Grain and Logistics Corporation as its subsidiary, the State-owned Assets Supervision and Administration Commission of the State Council said on Tuesday.

    "With the approval of the State Council, China Grain and Logistics Corporation will become COFCO's wholly owned subsidiary," said the commission.

    "The takeover is an important step for the company's whole industry chain strategies," said Zheng Yujie, an analyst with CI Consulting.

    "The move will greatly improve COFCO's logistical capabilities, which will eventually cut the cost of transporting oil and grain."

    Founded in 1952, COFCO is one of China's largest State-owned companies. It has four companies listed in Hong Kong, including Mengniu Dairy Co Ltd, and three companies listed in the mainland, including COFCO Tunhe Co Ltd.

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