In Korea, The Korea Times reported that POSCO International completed the full value chain of its palm oil business through the acquisition of an Indonesian plantation company and the completion of a palm oil refinery in the Southeast Asian nation.
The trading and energy arm of POSCO Group said that its Singapore-based subsidiary acquired a 65.72% stake in Sampoerna Agro for $566 million.
The total investment is expected to reach up to $862 million, given Indonesia’s financial regulations requiring POSCO International to make a tender offer for the remaining shares held by minority investors, according to the report.
“With this acquisition, POSCO International has added 128,000 hectares to its existing Papua plantations, bringing its total global agricultural base to 150,000 hectares,” a POSCO International official said.
POSCO International began developing palm oil plantations in Indonesia’s province of Papua in 2011 and started commercial production in 2016. It now operates three crude palm oil mills that produce a combined 210,000 tons annually, the report added.
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Category: Food & Agriculture
