China’s largest food company has bought a controlling stake in global grain trader Nidera.

COFCO Corporation is a grain, oil and food business, while commodity trader and agribusiness company Nidera is based in the Netherlands, with particular strengths in Europe and South America.

Nidera has an annual turnover of more than $17bn (£10bn), with operations in 18 major export and import countries, distributing products to more than 60 countries. Its UK base is in Ipswich.

See also: South America could hold key to crop forecasts

The transaction gives Nidera growth potential in the Chinese market while strengthening COFCO’s position through access to Nidera’s global buying and trading network and its expanding seed business.

COFCO has about 120,000 employees and deals with more than 12m farming households. Regulatory approvals must be gained for the transaction to be completed.