Louis Dreyfus to buy Brazilian instant coffee maker Cacique

By Gus Trompiz and Marcelo Teixeira

PARIS, March 26 (Reuters) - Agricultural commodity merchant Louis Dreyfus Company (LDC) has signed a binding agreement to acquire 100% of Brazilian instant coffee maker Companhia Cacique de Café Solúvel (Cacique), the companies said on Tuesday.

Financial terms of the deal, which is subject to regulatory approvals, were not disclosed.

Cacique is a large independent coffee processor with about 1,000 employees in Brazil, where it produces instant coffee from two plants for export to around 70 countries.

Cacique opened its second plant in 2021 in Espirito Santo, the Brazilian state that produces the most robusta, the variety widely used to make instant coffee.

Cacique's acquisition will expand LDC's soluble coffee business after it entered the market last year through a joint venture in Vietnam, the world's top grower of robusta beans.

Robusta coffee futures in London are trading at the highest levels since the contract was launched in 2008 due to tight supplies in Asia. Unfavorable weather led to smaller crops in Vietnam and Indonesia, while Brazil has increased its global share of robusta trade.

LDC, which handles farm goods from sugar to cotton, has partly shifted its focus toward the consumers to become less reliant on commodity trading.

(Reporting by Gus Trompiz and Marcelo Teixeira; Editing by Alison Williams, David Goodman and Richard Chang)

((marcelo.teixeira@tr.com; +1 332 220 8062; Reuters Messaging: marcelo.teixeira.thomsonreuters.com@reuters.net - https://twitter.com/tx_marcelo))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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