Singapore-based agribusiness giant Wilmar International on Monday said its unit entered into an agreement with Cargill Palm Plantation for the purchase of Cargill's edible oil facilities in Kuantan, Malaysia.
The sale of the edible oil facilities by U.S agribusiness conglomerate Cargill includes a palm oil refinery and a neighboring storage facility, the company said in a regulatory filing.
U.S.-based Cargill operates 20 palm oil refineries in Malaysia, India, China, Brazil, Mexico, the U.S. and the European Union that purchase, refine and market palm oil products from our own and other plantations.
The sale will be completed upon approval from all relevant authorities and the transfer of ownership is expected to occur by the end of 2018, Wilmar said.
"The facilities are a good fit with our refining business and will strengthen our sales and distribution network in Malaysia. Besides serving the local market, the facilities' strategic location in the Kuantan Port is an advantage for regional exports," Yee Chek Toong, Wilmar's Country Head of Malaysia said in a statement.
Singapore-based Wilmar has over 500 manufacturing plants and a distribution network covering China, India, Indonesia and some 50 other countries. Its business activities include oil palm cultivation, oilseed crushing, edible oils refining, among others.
Shares in Wilmar International ended down 0.6 percent at S$3.14 on the Singapore Exchange. The stock has lost 5 percent so far this year.