GoodWood Park Hotel Singapore
Singapore-based commodity trader - Olam International Ltd. (OLAM) has purchased Archer-Daniels-Midland Co. (ADM)'s cocoa business for $1.3 billion. The acquisition will help OLAM to become a top-three processor of the cocoa bean.
The new acquisition follows the purchase of U.S. peanut sheller McCleskey Mills Inc. for $176 million, including debt.
Olam says that demand for cocoa has risen three times faster than population growth in the last 15 years. The ADM deal will enhance Olam's processing capacity, thus helping it to sell directly to Nestle SA and Hershey Co.
Olam will now add 600,000 MT of processing capacity across Brazil and Singapore. This is in addition to the 100,000 tons it already owns. Plus, it will pick up the deZaan and UNICAO cocoa brands. This move will bring Olam in direct competition with the likes of Barry Callebaut AG and Cargill Inc.
More on 'Olam's Cocoa Position and Value Chain Activities in Africa' will be shared by V. Srivathsan, Managing Director Africa & M East, Olam International Limited at Cocoa Revolution (Emerging Markets, Processing Trends, Yield & Quality Improvement) on 4-5 March, 2015 in Singapore.
Contact Ms. Huiyan at huiyan@cmtsp.com.sg or call +65 6346 9113 for more details.