Olam acquires 50% stake in Acacia Investments

Singapore-based commodities company Olam International has acquired a 50% stake and voting rights in Acacia Investments (AI), a business group based in the United Arab Emirates for $35m.

Olam expects Acacia Investments’ brand franchise and knowledge of the local edible oil refining industry in East Africa, where AI has a strong presence, to complement its wide distribution network.

Currently, Olam distributes bulk commodities such as wheat flour, rice, and dairy products across several countries in East and Southern Africa.

Olam’s managing director Ranveer Chauhan said the company is seeking to become a preferred supplier of crude palm oil to Acacia due to its sourcing capability.

"Most importantly, we both share the same ambition of building a leading market position in palm oil refining and distribution in the region and we look forward to working closely with them in this partnership," Chauhan added.

This deal comes a few days after Olam announced its plans to gain 100% control of NZ Farming Systems Uruguay (NZFSU), which is involved in the development of dairy farms in Uruguay.

Olam plans to offer NZ$0.75 ($0.61) per share to acquire the remaining stake of 14.07% in NZFSU for NZ$25.8m ($21.08m), which will take Olam’s total acquisition cost to NZ$ 159.6m ($130.45m).

Olam International is a supply chain manager and processor of agricultural products and food ingredients primarily in Asia, the Middle East, Australia, and Africa.

The company operates through five divisions: edible nuts, spices and beans; confectionery and beverage ingredients; industrial raw materials; food staples and packaged foods; and commodity financial services.