Wilmar and Great Wall form sugar JV in Myanmar

Wilmar Sugar (Myanmar), a subsidiary of Singapore-based agribusiness firm Wilmar International, is to establish a joint venture (JV) with Myanmar-based Great Wall Food Stuff Industry.

Great Wall – Wilmar Holdings, the new entity in which Wilmar will hold a 55% interest, will produce and sell sugar and sugar by-products.

The deal marks Wilmar’s first foray into Myanmar’s sugar market.

As part of a business acquisition agreement (BAA), the JV will take over Great Wall’s existing sugar-related assets, including two sugar mills, which have a total milling capacity of 4,000t of sugarcane per day and produce 65,000t of sugar per year.

The BAA is subject to the receipt of regulatory approvals, and will be carried out in two phases.

Wilmar plans to use internal sources to fund the acquisition, and expects the transaction to have no material impact on earnings per share of the Wilmar Group for the current fiscal.

In February, the Singapore-based firm’s subsidiary Wilmar Sugar Holdings signed a deal to acquire a strategic stake in Indian sugar refiner and ethanol producer Shree Renuka Sugars.

Wilmar International engages in oil palm cultivation, edible oils refining, oilseeds crushing, edible oils processing and merchandising, speciality fats, oleochemicals, and biodiesel manufacturing.

The company runs more than 450 manufacturing facilities and an extensive distribution network covering China, India, Indonesia and some 50 other countries.

---

Image: The joint venture will produce and sell sugar and sugar by-products. Photo courtesy of Suat Eman at FreeDigitalPhotos.net.