Olam International has acquired a 50%stake in Acacia Investments(AI),a business group based in the United Arab Emirates with a strong presence in edible oil refining and distribution in East Africa,for$35m.
Olam managing director and Palm global head Ranveer Chauhan said the joint venture is beneficial as AI has developed a strong brand franchise and deep knowledge of the local edible oil refining industry in East Africa,while Olam distributes various bulk commodities like rice,wheat flour and dairy products across multiple countries in East and Southern Africa.
"We also aim to be a competitive and preferred supplier of CPO(crude palm oil)to the joint venture given our sourcing capability,"Chauhan added.
With the joint venture,both the parties are seeking to build a leading position in palm oil refining and distribution in the region.
Olam International is a Singapore-based integrated supply chain manager and processor of agricultural products and food ingredients.
