Cargill is to quit the vegetable oil business in Romania in a bid to develop its agricultural operations in the country.
The US agribusiness giant has agreed to sell assets that include the Untdelemn de la Bunica and Olpo to Expur, part of French group Sofiprotéol.
"Cargill has a strong presence in Romania and it remains a strategically important country for us. We will continue to grow our local business offering farmers a range of products, services, advice and financial tools," Martin Schuldt, president of the board of Cargill's oils business, said. "Expur, part of the French Sofiprotéol Group, is already operating in the Romanian vegetable oil market and we believe our agreement provides a better opportunity for the future of this business and its brands."
The deal, which Cargill said is subject to the approval of competition authorities, will see the company close a plant in Podari, which is not part of the transaction.
Cargill reaches agreement with Expur to sell sunflower crush, refinery and bottling assets in Romania
Podari, Romania – 6 February 2013. Cargill has reached an agreement to sell its sunflower crush, refinery and bottling assets in Romania to Expur, a subsidiary of Sofiprotéol, France. This sale would include the vegetable bottled oil trademarks Untdelemn de la Bunica and Olpo and part of the crushing, refining and bottling equipment.
Cargill has made a strategic decision to cease its vegetable oil operations in Romania and to focus on the growth and development of its agricultural businesses, including its range of services to farmers and its animal nutrition business in this market. As a result, after the sale of the assets, Cargill would close its site in Podari, south Romania, which is not included in the deal.
Martin Schuldt, President of the Board of Cargill Oils S.A., commented on the agreement: “Expur, part of the French Sofiprotéol Group, is already operating in the Romanian vegetable oil market and we believe our agreement provides a better opportunity for the future of this business and its brands.”
“Cargill has a strong presence in Romania and it remains a strategically important country for us. We will continue to grow our local business offering farmers a range of products, services, advice and financial tools. We work in close partnership with the food and feed industry in Romania, providing the highest quality of raw materials,” said Schuldt.
The transaction is expected to close in 2013, after approval by the anti-trust authorities. Following completion of the transaction, Cargill would undertake the appropriate measures to stop all production operations at the Podari plant.
