Bunge to acquire 70% stake in IOI Loders Croklaan for $946m

Global agribusiness and food company Bunge has agreed to acquire 70% ownership stake in IOI Loders Croklaan (Loders) from IOI Berhad (IOI) for $946m.

The deal was unanimously approved by the boards of directors of both Bunge and IOI. It is expected to complete in the next 12 months, subject to customary closing conditions and a majority approval of IOI shareholders.

Upon completion of the transaction, Bunge will hold a 70% ownership interest in Loders, and IOI will retain a 30% ownership stake and customary protective rights.

Loders will continue to retain its brand and operate as part of Bunge’s Food & Ingredients business.

According to the agreement, Bunge will have the option to purchase the remaining interest in Loders from IOI, and IOI will have the right to sell its interest to Bunge, for a five-year period after closing.

Commenting on the deal, Bunge chief executive officer Soren Schroder said: “This is a compelling transaction for Bunge. It delivers on our stated objective to expand our value-added business by accelerating our growth in B2B semi-speciality and speciality oils.

“Together with Loders, we will have a comprehensive product offering derived from seed and tropical oils, with leading innovation, application capabilities and sustainability programmes.

“This complete seed and tropical oil portfolio will position Bunge to be a full-service partner and uniquely able to help our customers innovate and grow for the future.”

Loders operates in semi-speciality and speciality B2B oils market, and its product portfolio includes a full range of palm and tropical oils used in confectionery, bakery and infant nutrition applications.

JP Morgan is acting as the exclusive financial adviser to Bunge and Shearman & Sterling as legal counsel.