December 14, 2006

Wilmar announces US$2.68 billion merger with Malaysia's PPB Oil Palms
 

Wilmar International has announced its merger with Malaysia-based PPB Oil Palms at a cost of S$4.1 billion (US$2.68 billion).

Coupled with Wilmar International's planned purchase of the edible oils, grains and related businesses of its parent company Wilmar Holdings Pte. Ltd. for S$2.5 billion, the company is expected to become the agribusiness giant of Asia.

PPB Oil Palms has indicated that it would not seek an alternative bidder.

The deal would conclude with Wilmar Holdings owning 48.5 percent of the new entity and the Kuok Group holding 31 percent of Wilmar. 

Set to process significant quantities of palm and lauric oils, the merged entity will have 33 refineries and an annual production capacity of over 10 million tonnes.

Chairman and CEO of Wilmar International Kuok Khoon Hong commented that palm oil was becoming a major commodity worldwide, and the new entity would be the biggest palm oil refiner in Malaysia and Indonesia. It would also play a significant role in major palm markets such as India, eastern Europe, China, the Middle East and Africa, and is expected to boost Wilmar's profitability.