Fertilizer Markets and Finance

Macquarie Group extended its ties with the physical commodities market by buying a stake in Czarnikow, the sugar and ethanol specialist, in the latest of a series of stake purchases in trading houses.

Macquarie purchased 42.5% of Czarnikow, matching the stake owned by Associated British Sugar, the UK sugar producer owned by Associated British Foods.

The balance of London-based Czarnikow, an advisor, supply chain manager and trader in sugar, is owned by its employees.

The deal follows Macquarie’s acquisitions, in agricultural commodities, of stakes groups such as Quadra, the Swiss-based grain trader, besides, in other raw materials, significant stakes in gas traders including US-based Constellation Energy.

Scope of ambitions

However, Macquarie is not expected to use Czarnikow as a route to expanding its presence in physical commodities, as some other large institutions have done.

Czarnikow three years ago unveiled an alliance with Deutsche Bank to trade physical sugar cargoes, although more recently banks have lost a series of commodities staff to physical trading houses such as Trafigura and Vitol.

Earlier this month Roger Jones, Barclays former global head of commodities, revealed his defection to Mercuria.

Read more at Agrimoney