PARIS, Jan 19 (Reuters) - Global commodity merchant Louis Dreyfus Company (LDC) has agreed to acquire the rest of Australian partner Namoi Cotton to reinforce its position in one of its key agricultural products.

LDC has made a cash offer to acquire the 83% of issued shares in Namoi that it does not already control, the companies said on Friday.

Namoi shares rose to their highest since October 2022 as investors reacted to the offer, which represented a 6.25% premium to the stock's previous close.

Namoi Cotton is Australia's largest cotton processing and supply chain business, with a ginning capacity of 1.6 million bales and a network including 10 cotton gins in New South Wales and Southern Queensland as well as three warehouse facilities, LDC's statement said.

“The addition of Namoi Cotton into our Australian cotton operations also aligns with LDC's global strategy to reinforce its leadership in core merchandising activities," said Joe Nicosia, LDC's head of cotton.

LDC, which is privatelly controlled by Margarita Louis-Dreyfus, is one of the world's largest traders and processors of agricultural goods. It currently owns 17% of Namoi Cotton and operates two joint ventures with the company - Namoi Cotton Alliance (NCA) and Namoi Cotton Marketing Alliance (NCMA).

The acquisition is expected to be completed in mid-2024, subject to regulatory clearance, LDC said.

(Reporting by Gus Trompiz Editing by David Goodman )