17 January 2023 (Lloyd's List) - COSCO Shipping Holdings is planning to acquire new shares offered by a key subsidiary of Cofco Group, China’s largest food processor, manufacturer and trader. The containership and port arm of state conglomerate China Cosco Shipping Corp said the 5.8% stake, worth Yuan5.5bn ($810m), in Cofco Fortune will allow the two parties to enhance supply chain co-operation on agriculture products. The investment marks “an important measure for the deep integration of the modern service industry and modern agriculture”, it said in a stock exchange filing, adding the deal will help “safeguard the safety of the global food industry chains and supply chains”. The investment followed a capital increase plan initially announced by the Cofco unit in November on China Beijing Equity Exchange seeking to raise about Yuan21bn for capacity expansion and product innovation, among other purposes. The company started its initial public listing plan, according to a filing from the Shanghai Stock Exchange, soon after it was established in 2021. Principally engaged in food processing, trading and related global supply chain business, Cofco Fortune is nearly 90% owned by state-owned Cofco Group and its other subsidiaries. The controlling stake will reduce to about 70% upon the completion of the transaction. CSH said it and Cofco Fortune will “further explore intersections of business co-operation”, including expanding end-to-end business collaboration, combining container yards, warehouses, sea-rail transportation and other resources. They will also work together on investing, operating and constructing terminals both domestically and overseas, as well as on digital strategy to promote a smart food and logistics industry. Cofco Group was listed on the Hong Kong Stock Exchange until it was privatised in 2020.