UPDATE 1-China's Hunan Dakang buys control of Brazil grains trader Fiagril
(Adds estimated size of the deal, industry background)
SAO PAULO, April 29 (Reuters) - Brazilian grains company Fiagril Participações SA sold a controlling stake to China's Hunan Dakang Pasture Farming Co Ltd, a unit of Shanghai Pengxin Group Co, the Brazilian company said on Friday.
Two sources with direct knowledge of the deal said the Chinese firm bought a 57 percent stake in family-owned Fiagril, the latest move by Chinese agricultural merchants seeking to secure future supply of food in Brazil.
The first source, who requested anonymity because terms of the deal remain private, said the value of the deal could be around 1 billion reais ($290 million). The second source said that current management will be kept in place.
Fiagril released a statement but it gave few details.
Under terms of the deal, Pengxin will provide fresh financing to Fiagril through working capital loans, the first source said.
Fiagril Chairman Marino Franz said in the statement the company will be able to grow after the agreement. Fiagril, which has grains trading and processing operations, is based in Lucas do Rio Verde in Mato Grosso state, in the heart of Brazil's center-west grain belt.
Fiagril negotiates the purchase of soybeans and corn directly with farmers, to whom the company also supplies fertilizers and pesticides.
The deal will exclude Fiagril's shipping, biofuels and seed production businesses. Continuación...