Davis Commodities, Carfax Commodities enter stock acquisition plan

Davis Commodities (DTCK) announced the signing of a Memorandum of Understanding with Carfax Commodities to enter into a strategic share acquisition plan on 24 February 2025. This collaboration promises significant synergies and growth opportunities for both entities. The proposed transaction under consideration involves Davis Commodities Limited potentially acquiring up to 49% of the share capital of Carfax Commodities. This collaboration marks a pivotal moment for both companies, leveraging their expertise and market reach to unlock new avenues for global expansion and operational efficiency. Transaction Highlights: Strategic Acquisition: Davis Commodities Limited, with its strong presence in agricultural commodity trading, aims to acquire a substantial stake in Carfax Commodities, paving the way for enhanced market penetration and diversified offerings. Operational Integration: The transaction structure, subject to negotiation, will focus on aligning operational processes and leveraging shared resources to optimize supply chain management and distribution networks. Due Diligence Process: Both parties are committed to a thorough due diligence exercise, ensuring transparency and comprehensive assessment of the future synergies and opportunities presented by the partnership. Transaction Timeline: Finalisation of Due Diligence Process: 28 March 2025; Finalisation of the key commercial terms of the Proposed Transaction: 30 April 2025; Completion of the Proposed Transaction: 27 June 2025