Jul 05, 2016 at 05:34 PM CST
WHITE PLAINS, NEW YORK, U.S. — Bunge Limited and Wilmar International Limited announced on July 5 they are forming a joint venture in Vietnam to leverage both companies' footprints in Asia.
Bunge will sell 45% of its equity in its Vietnam crush operations to Wilmar, creating a three-party joint venture with Bunge and Wilmar as equal 45% shareholders and Quang Dung – a leading soybean meal distributor in Vietnam and majority owner of Green Feed, a growing Vietnamese feed milling business – retaining its existing 10% stake in the operations.
The transaction establishes a strategic collaboration between three uniquely positioned leaders in the Vietnamese oil and feed markets, unlocking growth potential by connecting Bunge's upstream crushing capabilities to Wilmar's downstream oil refining and consumer products business, and to Green Feed's feed milling and marketing activities. The joint venture creates integrated operations that are both a source and sales outlet for oil in Vietnam – one of the fastest-growing domestic edible oils markets in Asia – and that enable increased participation in the domestic feed milling industry.