US agribusiness Bunge has announced plans to form a joint venture with an Indonesian palm plantation.
Bunge Agribusiness Singapore, a subsidiary of Bunge, plans to team up with PT Bumiraya Investindo, a subsidiary of PT Tiga Pilar Sejahtera Food (TPS) that operates four plantations in Kalimantan. It is also constructing a crude palm oil mill in the region.
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Under the terms of the agreement, Bunge Agribusiness Singapore would acquire a 35% minority stake in PT Bumiraya Investindo.
The transaction, which is still subject to approval by TPS Food shareholders and Indonesian regulators, would be Bunge’s first foray into the palm oil industry.
“Our investment in PT Bumiraya Investindo represents a first step in building an upstream presence in palm oil”, Christopher White, CEO of Bunge Asia, said yesterday (1 November).
“It is a natural fit, through which we can leverage our core capabilities and experience in a complementary value chain that represents over 30% of the world’s total vegetable oil production.”
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By GlobalDataTPS Food is a rice processing and distribution business and has moved into palm production over the last two years.
