An odd trade

24 September 2010 By Una Galani Follow @ugalani

A deal could be worth $15 bln and would create the world’s third largest agricultural commodities trader. Big may be better in trading, and the tieup could advance the French group’s strategic ambitions. But a combo may dilute the attractions of nimble Singaporeanbased Olam.

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Louis Dreyfus, the privatelyowned French trading house, is in talks with smaller rival Singaporeanbased Olam International over a tieup that may lead to a $15 billion merger and the creation of the world's third largest agricultural commodities trader.

Discussions over "a possible business collaborations which may take the form of, among others, a merger" were at a preliminary stage and that there was no guarantee an agreement would be reached, the Singaporean company said in a statement.

Robert Louis Dreyfus, the former chief executive of the French group, died in July last year and passed on his majority stake in the business to a family controlled trust. The remaining shares are owned by other family members.

Shares in Olam, which is 13 percent owned by Singaporean sovereign wealth fund Temasek, rose almost 7 percent following the announcement.

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