WHITE PLAINS, N.Y. — Bunge Ltd. and Singapore-based Wilmar International Ltd. have agreed to form a joint venture in Vietnam to leverage both companies’ footprints in Asia.
Under terms of the agreement, Bunge said it will sell 45% of its equity in its Vietnam crush operations to Wilmar, creating a three-party joint venture with Bunge, Wilmar and Quang Dung, a soybean meal distributor in Vietnam and majority owner of Green Feed, a Vietnamese feed milling business. Bunge and Wilmar will be equal 45% shareholders. Quang Dung will retain its existing 10% stake in the operations.
|Soren Schroder, c.e.o. of Bunge|
“Bunge is excited to partner with Wilmar, the largest downstream edible oils player in Vietnam,” said Soren Schroder, chief executive officer of Bunge. “The collaboration will create increased operating, marketing and logistics synergies across the Vietnam oils and soybean meal value chains, and help us remain a low-cost operator with the highest efficiency possible.”
Kuok Khoon Hong, chairman and c.e.o. of Wilmar, called Bunge “a natural partner.”
|Kuok Khoon Hong, chairman and c.e.o. of Wilmar|