Mercuria Buys Back Minority Stake From Chinese State-Backed Fund

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(Bloomberg) — Mercuria Energy Group Ltd. has bought back its shares that were held by CNIC Corp., marking an end to a decade of minority ownership in one of the world’s biggest commodity traders by companies linked to the Chinese state.

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CNIC no longer has any shareholding in Mercuria’s holding company, according to documents seen by Bloomberg News. The company’s billionaire co-founders Marco Dunand and Daniel Jaeggi have also increased their combined stake to 68.21% from about 64% roughly a year ago.

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The ownership shift comes as supply chains for raw materials have become increasingly politicized, with tensions between China and the US in particular spilling over into markets from oil to copper and soybeans. While commodity traders like Mercuria have long prided themselves on operating outside of politics, the strong focus on commodities by the Trump administration has placed a growing spotlight on the industry. 

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State-backed fund CNIC bought a stake of just under 5% in Mercuria in the fourth quarter of 2022, Bloomberg reported previously. The investment came shortly after Mercuria repurchased a 12% minority interest from ChemChina, another state-backed firm which had bought its stake in 2016. The documents show 4.99% of Mercuria’s shares are now classified as “held in Treasury.”

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Dunand and Jaeggi’s controlling ownership of Mercuria has made them some of the biggest beneficiaries of the trading bonanza that followed Russia’s invasion of Ukraine — the company has paid out $5.5 billion in dividends in the past three years.

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The two men have consolidated their control over the trading house in recent years, including as one-time heir apparent Magid Shenouda left the firm in 2024. While Mercuria hired three heavy hitters as a new generation of leaders to help manage the business, one has already departed.

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A spokesperson for Mercuria declined to comment, while CNIC did not immediately respond to calls or messages seeking comment.

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US Deals

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Mercuria, which got its start as a trader of Russian oil into Poland, is now one of the world’s top commodity traders with a large gas and power business and a rapidly growing portfolio in metals. 

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The company is one of three trading houses tasked by the Trump administration with handling purchases of raw materials for a $12 billion stockpile announced to counter Chinese dominance over various metals supply chains. 

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It has also been looking to join Trafigura Group and Vitol Group in trading Venezuelan oil under a US permit, Bloomberg reported last week. 

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The US issued a general license last month to allow more companies to handle Venezuelan oil, but excluded any that are owned or controlled by Chinese shareholders. 

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Mercuria grew out of J&S Group, a company founded by Gregory Jankilevitsch and Wiaczeslaw Smolokowski. The two Polish partners and an investor and trader from that time, Vadim Linetskiy, now hold a combined shareholding of 7.25% in the holding company, down from 11.2% in 2018.

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Mercuria’s employees own 18.55% of the holding company through a share ownership plan. Han Jin, a long-time employee and the head of Asia, retains a 1% stake, the document shows. 

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—With assistance from Alfred Cang.

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