London's Armajaro Holdings Ltd sold its commodity trading arm to Switzerland's Ecom Agroindustrial Corp Ltd for an undisclosed amount. The news follows Armajaro's report of a USD7.5 million loss in 2012. The deal would create one of biggest cocoa and coffee dealers in the world, according to a report published by Reuters.
The Swiss agricultural trader has over 150 years of experience in cotton trading in Spain. Armajaro would reinforce its presense in the high-risk industry of cocoa and coffee trading, the report said.
The newly combined trading company would complete with Cargill Inc and Archer Daniels Midland Co in cocoa trading. It would also compete with Newmann Kaffee Gruppe in coffee trading, the report stated.
Under the terms of the deal, Ecom's Alain Poncelet, deputy head of cocoa and coffee, would be the Chief Executive Officer of the new company. Mark Dendle would be appointed as the chief financial officer. Both officers would retain their present ranks in Ecom, Reuters reported.
Join the Conversation