A visual from Bunge's website.
NYSE-listed agribusiness Bunge Limited has signed a deal to sell 45% of its equity in its Vietnam crush operations to Singapore’s Wilmar International Ltd, the world’s largest palm oil processor and one of the biggest soybean buyers, according to a statement filed on Bunge’s website.
The third party, Quang Dung Co. will retain its existing 10% stake in the operations, creating a creating a three-party joint venture with Bunge and Wilmar as equal 45% shareholders.
Quang Dung Co. is a leading soybean meal distributor in Vietnam and majority owner of Green Feed, a growing Vietnamese feed milling business.
“The joint venture creates integrated operations that are both a source and sales outlet for oil in Vietnam – one of the fastest-growing domestic edible oils markets in Asia – and that enable increased participation in the domestic feed milling industry,” says the statement.
The soybean meal distribution capabilities of the joint venture also complement Wilmar's animal feed ingredients business in Vietnam, including rice bran, wheat bran, palm kernel expeller, copra expeller, canola meal and feed oils, said Kuok Khoon Hong, Chairman and CEO of Wilmar.
Vietnam is a growing market for oilseeds due to increased consumer demand for meat and production of livestock, which are fed with soybean meal.
The country is projected to import 5.2 million tons of meal in 2016-2017, up from 2.291 million a decade ago, Reuters cited U.S. Department of Agriculture data as saying.