Olam International acquires remaining 50% stake in Acacia Investments

Singapore-based Olam International has bought the remaining 50% interest in Acacia Investments (AI) for $24m.

The transaction is expected to get completed by the end of June.

On completion, AI will become a wholly owned subsidiary of Olam.

AI operates in the edible oils refining segment and has a strong distribution network in the East Africa.

Olam managing director and CEO of its palm and rubber businesses Ranveer Chauhan said: "The acquisition of the remaining 50% interest in AI allows us to consolidate all our edible oils operations in Mozambique and realise synergies in distribution and brands to take this business to its full potential.

"It is in line with our stated Palm business strategy to invest in midstream assets in select African markets."

Olam International operates in 70 countries, and has more than 16,200 customers.

Last month, Olam International signed a five-year loan agreement for $175m to fund its four food processing facilities in Nigeria and India.

It signed the agreement with International Finance Corporation (IFC), a unit of the World Bank Group.

Earlier this year, it paid $275m to acquire Amber Foods, which through its Quintessential Foods Nigeria unit, owns the wheat milling and pasta manufacturing assets of the BUA Group in Nigeria.

This acquisition aims to boost Olam’s market position in wheat milling and pasta manufacturing segments in Nigeria.