Foreign funds acquire large Chilean fruit companies

They are very large and surprising purchases or financial operations, all made in a short term, and according to projections they will multiply over time, because it is about ensuring investments in a field identified as having great future profitability, such as fruit growing. And food.

In recent times there have been several cases of strong foreign investment in the Chilean fruit sector, especially in the purchase of large companies in the sector or in the considerable increase in participation in them.

The North American company Frutura is buying the Chilean producer and exporter Giddings Fruit. Previously, this same company bought the company Subsole, leader in the table grape market. According to El Financiero, the Chilean company Unifrutti was also acquired by an Abu Dhabi fund and significant foreign capital has entered David del Curto.

big capitals

For its part, the Canadian company PSP Investments abruptly increased its stake in the renowned Chilean company Hortifrut, going from controlling only 4,88% to a stake of over 49%, in an operation close to USD 420 million.

They are very large and surprising purchases or financial operations, all made in a short term, and according to projections they will multiply over time, because it is about ensuring investments in a field identified as having great future profitability, such as fruit growing. And food.

food demand

This profitability projection is based on the explosive increase of humanity in the short term and the need to feed billions of people with practically the same surface area of ​​land, for which reason these industrial production companies, experts in achieving large yields with the application of high technology and modern production systems, are highly valued for large investors in the future.

We are talking about a scenario of 10 billion people in the next 25 years, who will demand double the food production than the current one.

continental reality

Although this situation is surprising, it should not be, because it has been repeated in several Latin American countries, such as Ecuador, Colomba, Uruguay and Peru. In fact, the same PSP fund, which increased its stake in Hortifrut, had already bought the Company. Berries Peú – Olmos, which Hortifrut itself controlled in Peru. The same with Frutura, which has already acquired other large fruit companies in Uruguay and Peru.

Nor should these operations come as such a surprise, since indeed the Latin American fruit sector has great stability and sustainability as a productive and industrial activity and is called upon to play a very leading role in a future scenario of high demand for food, due to soil, due to climate , due to experience and versatility of products in their export portfolios.

Source
Blueberries Consulting

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