Bunge agrees to divest Rotterdam refinery to Neste for $300m

Bunge’s joint venture (JV) Bunge Loders Croklaan has entered an agreement with Neste to divest its refinery in Rotterdam, the Netherlands, for a €258m ($300m) cash consideration, excluding working capital.

The facility produces plant-based oils and fats for the food industry.

According to the deal, Bunge will take the refinery on lease from Neste in a phased way through 2024 to ensure supply continuity for its customers.

Completion of the deal is subject to regulatory approvals and expected to take place in the first quarter of 2021.

Bunge will use the proceeds from the divesture to reinvest in its asset footprint to achieve greater operational flexibility and offer an enhanced portfolio of multi-oil refined products to its customers.

Bunge CEO Greg Heckman said: “This transaction supports our long-term strategy in value-added oils and oilseeds-based ingredients by enabling us to further enhance our footprint in an innovative and sustainable way.”

In a separate development in the Netherlands’ food segment space, animal-free food ingredients producer The Protein Brewery has raised €22m ($25.6m) through a Series A investment round, which was led by Novo Growth, the growth equity unit of investment and asset management company Novo Holdings.

The proceeds will be used by The Protein Brewery to continue its research and development activities, as well as increase the production capacity of its flagship product Fermotein and cater to its operational costs.

The Protein Brewery founder Wim de Laat said: “Providing food for a population of ten billion people by 2050 demands alternative scenarios. It is an important driver in our mission to contribute to a more sustainable world, developing novel ways of producing food proteins.

“The financial support and domain expertise of our investors will help us take the next important step and move towards the realisation of a pilot plant, demonstrating the process, the properties and benefits of our innovative and nutritious food ingredient.

“It is paramount in the development of our company to continue the journey with committed shareholders who share the know-how, drive and enthusiasm for producing natural-based food. We are delighted that Novo Holdings, one of the world’s preeminent investors in biotechnology, recognises the potential of our technology to transform the food industry.”