JSjÈjO
'i
Rabobank International is already one of the most recognised
and active fïnancial institutions within the Food Agribusiness
sector. The next step in the bank's strategy, however, is to become
a truly global F&A player, and engage clients at all stages along
the food chain. Key to achieving these ambitions will be product
innovation, partnerships and growth within key markets.
Cooperation with Rothschild
in Food Agri M&A
Rabobank's revised strategy emphasises
the need to concentrate on the entire F&A
chain, from primary producers like farmers to
traders, processors, wholesalers and retailers.
But unlike many of its major international
competitors, Rabobank's business model
is not based simply on the profit that can
be generated from a deal, but rather the
client-relevance for the Group as a whole.
In other words, it's not merely 'the money'
that counts, it's critical that deals match the
revised strategy by focusing on F&A, have
a healthy risk-return profile and ensure that
clients have access to the bank's full product
range.
both fïrms will pool their respective industry
knowledge, resources and relationships
while expanding their respective geographical
reach and cliënt base through an enhanced
breadth of services around the globe.
To achieve this, however,
a worldwide presence
in the main or large
agricultural markets
is necessary, and the
right suite of products
and the ability to cross-
sell is a must. These
products, which will be
more closely aligned
with Rabobank's F&A
clients, will not only
be traditional - such as
foreign exchange, interest rate swaps, and
hedging products - but will also include
services such as mergers and acquisitions
(M&A).
At the end of 2008, Rabobank announced
it had entered into a global cooperation
agreement with Rothschild, in the field of
M&A and Equity Capital Markets advisory, in
the F&A sectors. As part of the cooperation,
According to Maarten ter Haar, head of
Rabobank Food Agri M&A for Europe,
one of the partnership's strengths is the
complementary geographical coverage both
organisations have. "We have a presence
where they don't and vice versa and hence
we can truly create a global franchise.
Additionally, we are also complementary
in our cliënt base - we're
traditionally stronger in
agribusiness, while they
have a stronger base in
the food sector. Apart
from combining both
our institutions' M&A
franchises, we add our
strong knowledge of
the sector through for
example FAR and our
balance sheet, while
Rothschild also adds a
strong brand name in
advisory."
Maarten ter Haar
And it will be how clients perceive the
cooperation, and whether or not it receives
new mandates, that will be the true measure
of its success, Ter Haar believes. "We also
need to see increased market share and
revenues, so we'll be looking for increased
penetration with clients, and we'll be hoping
to get more repeat business."
One of the drivers behind the agreement
was to develop Rabobank's F&A advisory
issue 19 a THE WORD 23
