The D in ABCD for FGV

Much has been said of FGVH's MOU with Louis Dreyfus and Vitol, whether they are the right fit, right culture, right partner. Here I have listed the facts:

1. Louis Dreyfus

Louis Dreyfus Group is a diversified French private holding company that is involved in agriculture, oil, energy and commodities (global processing, trading and merchandising), as well as international shipping. It is one of the world’s four traditional agricultural giants, which are known by their initials: ABCD - Archer Daniels Midland Co., Bunge Ltd. and Cargill Inc. and Louis Dreyfus.

The company has 34,000-plus employees in more than 55 countries and posted $74.3 billion in 2010 revenue. Louis Dreyfus is the biggest fund manager in agriculture futures; the No. 2 wheat, corn and sugar trader; the third-largest coffee seller and juice processor; and a major farmer and biofuel processor.

Margarita Louis-Dreyfus, the Russian wife of the previous Chairman, is the current Chairman of Louis Dreyfus Group and the largest shareholder via the Family Trust with a 65% stake in the parent Louis Dreyfus Holdings. The day-to-day operation is run by Serge Schoen, a German.

The commodities unit generated 62 percent of the holding company’s 2010 revenue and about 80 percent of its $892 million profit. Louis Dreyfus is a global entity and has had dealings in the past with many countries with Muslim majority populations.

Three key points

1. Louis Dreyfus supplies 30% of the rice requirements in Africa and 10% of grains requirements in the Middle East and Africa. It does not discriminate between Muslim or non-Muslim countries and see their role purely as providing commodities including food to the global population.

2. Loius Dreyfus has established presence in OIC member states. Their commodities division has registered offices in the following countries:-

-          PT. LOUIS DREYFUS COMMODITIES INDONESIA PLC. – Indonesia

-          LOUIS DREYFUS COMMODITIES MEA TRADING DMCC – UAE

-          LOUIS DREYFUS COMMODITIES ALEXANDRIA LTD - Egypt

3. Malaysia must have a more globalised outlook and engage aggressively in global trade. FGVH MOU with Louis Dreyfus looks to immediately open up new markets for business expansion.

2. The Vitol Group

The Vitol Group, a private company, was founded in 1966 in Rotterdam, the Netherlands with 330 employees making up its shareholders with a remaining 2370 other employees. The company is now the world's largest independent energy and commodity trader.

Vitol S.A and Felda Global Ventures Holdings Berhad (FGVH) signed a Memorandum of Understanding (MOU) to collaborate on the supply, international trading, marketing, logistics operations and risk management on various commodities, excluding oil and fats. Under the terms of the MOU, the two parties plan to incorporate a joint-venture company in Kuala Lumpur with FGVH as the majority shareholder.

Vitol has a 50% share in VTTI, a storage and terminals business which operates 11 terminals on five continents with an existing capacity of approximately 6.5 million cubic metres which includes its recently completed 841,000 cubic metre world-class oil products terminal in Tanjung Bin, Johor, Malaysia. The 50% joint venture with Malaysian maritime conglomerate MISC for the ATB oil terminal in the Port of Pelepas received its first tanker on April 10th 2012.

Three key points

1. The Vitol group already has a successful track record in Malaysia with the 841,000 cubic metre world-class oil products terminal in Tanjung Bin, Johor, Malaysia.  

2. Its trading portfolio includes crude oil, petroleum products, bunker fuel, LPG, LNG, natural gas, coal, power, metals, carbon emissions and sugar. Its 2011 revenue was US$297 billion.

3. Vitol has offices in Malaysia and other OIC countries:

Malaysia - ATT Tanjung Bin Sdn Bhd

Bahrain - Vitol Bahrain E.C.

Nigeria - Vitol Exploration Nigeria Limited

Pakistan - VTT Port Qasim

United Arab Emirates - Vitol Dubai Ltd.

Just the brief facts for now. Ade lagi on d way... stay tuned.