Commodity trading company ED&F Man Holdings Ltd will be selling some part of its brokerage unit to focus on its core business.
The company well established in sugar and coffee trading across the globe had decided to sell its structured commodities business, the brokerage unit. The business will be taken over by the investment firms Albright Capital and De Jong Capital and will rename it as Hedgepoint.
The deal is being done on the backdrop of renewal of commodity business following the revival of the global economy after the coronavirus pandemic. The prices of commodities including crude oil, copper and soyabeans are rallying as the sign of recovery is being seen in the trading world.
Heber Cardoso, chief of the ED&F Man Capital’s structured commodities business said, “The new demand in the commodities has increased as people are taking long-term views on commodities.”
The company that was in losses is trying to recover the losses and turn the business into a profitable venture and is taking steps to revive the business.
The London based company is focusing on selling the non-core assets to reduce its debts.