INDONESIA: Wilmar, Noble form palm oil joint venture

By Michelle Russell | 22 February 2013

This is the second joint venture for Wilmar in the last six months

This is the second joint venture for Wilmar in the last six months

Singapore agribusiness giant Wilmar International has formed a joint venture with peer Noble Group to produce palm oil and its by-products in Indonesia.

The companies said Wilmar's subsidiary Newbloom will hold a 53.74% equity stake in the venture while Noble unit Noble Plantations will own the rest. Financial details were not disclosed.

Through the joint venture, the firms will develop and operate palm projects to produce and sell crude palm oil and its by-products in the Papua region of Indonesia.

This is the second joint venture for Wilmar in the last six months. In October, the company formed a business with agribusiness giant Archer Daniels Midland to sell and market vegetable fats and oils in Europe.

The deal comes as Wilmar books a drop in full-year profit, hurt by lower palm oil prices. In the 12-month period earnings slid 21.6% to US$1.26bn. 

Total sales were up by 1.7% to $45.46 for the year as higher sales volume in palm & laurics, consumer products and sugar was "substantially" offset by lower average selling price, reflecting the general trend of palm oil and sugar prices.

Show the press release

 

Wilmar and Noble form palm focused strategic joint venture

Noble Group Limited (“Noble”) and Wilmar International Limited (“Wilmar”) wish to announce the sale by Noble Resources Pte Ltd, a wholly owned subsidiary of Noble, of a 53.74% equity interest in Noble Plantations Pte Ltd (“JVCo”) to Newbloom Pte Ltd, a wholly owned subsidiary of Wilmar. The sale and purchase is subject to various regulatory approvals. On completion, JVCo will be 53.74% owned by Wilmar and 46.27% owned by Noble.

Noble and Wilmar have agreed, through JVCo, to form a Papua focused, strategic joint venture in order to develop and operate palm projects to produce and sell crude palm oil and its by-products.

JVCo presently owns a majority interest in PT Henrison Inti Persada, which in turn owns 22,953 Ha of land for palm production in Papua, Indonesia.

 

 

 

 

Original source: Wilmar International

Sectors: Commodities & ingredients, Mergers & acquisitions

Companies: Archer Daniels Midland

There are currently no comments on this article

Be the first to comment on this article

Related research

Vegetable Oils

This report analyzes the worldwide markets for Vegetable Oils in Thousand Metric Tons by the following Product Segments: Soybean, Olive, Canola, Sunflower & Safflower, Corn, Palm, Coconut, and Others....

Starch

This report analyzes the worldwide markets for Starch in Thousand Metric Tons by the following Product Segments: Dry Starch (Native Starch, Modified Starch, & Other Dry Starches), and Liquid Starch....

Nutraceuticals

The report provides separate comprehensive analytics for the US, Canada, Japan, Europe, Asia-Pacific, Latin America, and Rest of World. Annual estimates and forecasts are provided for the period 2010 through 2018. A six-year historic analysis is also...

Related articles

US: Profits slide as ADM raises bribery probe provision

Archer Daniels Midland has booked a drop in first-half earnings on higher costs and an increased provision set aside to settle a bribery investigation being carried out by US authorities.

Editor's choice: the highlights on just-food last week

China has once more dominated the headlines, as we brought you coverage of our recent trip to the country where we were given the opportunity to meet with Nestle CEO Paul Bulcke.

Deal or no deal: Cargill touted as ADM cocoa suitor

Reports emerged earlier this month that US agribusiness giant Cargill is exploring the possibility of buying Archer Daniels Midland's (ADM) cocoa business. While not confirmed, such a purchase would create a global giant in the sector. Michelle Russell takes a closer look.

Welcome to the home of food information, insight & intelligence

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page