Sector News

Wilmar scoops up rival Bunge's sugar trading operations

August 23, 2018
Food & Drink

Singapore-based agribusiness Wilmar International Ltd has scooped up the sugar trading book of rival Bunge for an undisclosed amount, the companies said on Wednesday.

The sale is the latest in Bunge’s efforts to reduce its exposure to a struggling sugar unit, which the company first said in 2013 it was looking to sell. Bunge said earlier this year it would seek to sell its trading operations separately from its production assets in Brazil.

Sugar prices have plunged as production outstrips demand, leaving the world awash in excess supplies. Benchmark futures of raw and refined sugar fell to their weakest levels in a decade this week.

The sale includes both raw and refined sugar contracts, Wilmar said in a filing. The company, which is a major user of raw sugar as well as a producer, has been expanding its footprint through purchases of mills as well as new trading ventures in the last several years. The acquisition from Bunge is not expected to have any material impact on the company’s current financial year, according to the filing.

In March, Wilmar said it had not held talks with Bunge over the sugar trading business but also declined to comment when asked if it had considered acquiring the unit.

Bunge, a major global player in the trading and production of sugar, has been seeking to exit the business since 2013. The White Plains, New York-based company still owns mills in Brazil, the world’s top producer and exporter of the sweetener.

By Chris Prentice and Chandini Monnappa

Source: Reuters

comments closed

Related News

May 21, 2022

Cécile Béliot becomes Bel Group CEO

Food & Drink

Cécile Béliot has assumed the role of Bel Group chief executive officer, following the decision to separate the roles of chairman and CEO. The separation of the functions will enable Bel Group to develop in three areas of healthy snacking. Meanwhile, the company’s former CEO, Antoine Fiévet, has had his mandate renewed as chairman of the board.

May 21, 2022

“Corporate greed and dereliction of duty”: FDA commissioner slammed over infant formula shortage

Food & Drink

US Food and Drug Administration (FDA) Commissioner Dr. Robert Califf was grilled by lawmakers during a House Appropriations subcommittee hearing, where he was slammed over the agency’s handling of the escalating infant formula shortage.

May 21, 2022

Sweegen hails antioxidants and bitter blocking tech a turning point for sugar reduction and healthy aging

Food & Drink

Sweegen is ramping up its efforts to reduce sugar across F&B applications while simultaneously tapping into the benefits of using antioxidants and bitter blocking technology. Speaking to FoodIngredientsFirst, Casey McCormick, vice president of global innovation at Sweegen, says product developers can find a broad range of solutions in Sweegen’s nature-based sweetener systems as brands elevate better-for-you foods.