UK commodities trader ED&F Man is in discussions regarding a potential takeover by US energy firm Hartree Partners LP, people familiar with the matter said, reported Bloomberg.
The talks come after Hartree acquired a substantial portion of ED&F Man’s debt, exceeding $1 billion. Although ongoing, no final decision has been reached between Hartree and ED&F Man.
As per news report, if the acquisition materialize, it would signify the absorption of one of commodity trading’s historic giants by a relatively newer entrant.
ED&F Man, renowned for its global transportation of sugar and coffee, acknowledged receiving “several unsolicited approaches” last year. The London-based trader reiterated its commitment to business as usual, citing the board’s responsibility to prioritize stakeholders’ interests. The company declined further comment.
Bloomberg stated that Hartree also declined to comment on this matter.
Energy traders such as Hartree have diversified into additional commodity markets amid record profits in recent years. Formerly known as Hetco, the company has ventured into a burgeoning metals business and expanded its agricultural derivatives trading with new hires.
ED&F Man underwent restructuring in recent years, divesting non-core assets and underperforming ventures, including its shipping and brokerage units and sugar mills in Mexico.
