Agribusiness and food giant Cargill has entered into an agreement to buy the commercial edible oils and fats business of Australian food group Goodman Fielder.

Cargill said the for A$240m (US$219.9m) acquisition will provide the business with a "solid platform" for expansion in Australia and New Zealand.

"It will enable us to offer our customers integrated solutions that help drive growth through new product innovation, and deliver efficiencies through our supply chain, risk management and process optimisation capabilities," Bram Klaeijsen, president and regional director, Cargill Asia-Pacific, said.

The deal includes four refining assets and establishes a ten-year supply agreement, under which Cargill will supply refined fats and oil to Goodman Fielder.

Goodman Fielder, who decided to sell the business in order to focus on core consumer foods operations, said that the sale would further this aim.

"The sale of these assets will allow the company to focus on our core business which is
the manufacturing and marketing of everyday branded consumer foods. We will now
concentrate on enhancing the strength of our outstanding portfolio of retail consumer
brands," Goodman Fielder MD Peter Margin said.

Goodman Fielder did not comment on what it plans to use the funds for.

The deal is subject to regulatory approval.