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Palm Oil Trader Coming to Russia
The Russian vegetable oil market has caught the attention of one of the world's leading producers and traders of palm oil. The Singaporean Wilmar International Ltd. and the Nizhny Novgorod Oil and Fat Combine group of companies may form a joint venture with equal shares to produce industrial lipids from palm oil. Wilmar, which has an annual revenue of $5.3 billion, may acquire the Nizhny Novgorod combine for $250-300 million, since it currently has no representation in Russia. The final decision on the deal will be made by January.
Wilmar International was founded in 1991. It owns 160 plants in 20 countries. Its net profit for 2006 was $105 million. Its stick is traded on the Singapore Exchange and its capitalization is more than $21 billion. The Nizhny Novgorod Oil and Fat Combine group consists of the combine itself, the Samara Lipid Combine, the Perm Sdobri Margarine Plant, two oil extraction plants and two elevators. In 2006, the group occupied 30 percent of the Russian margarine market, 18 percent of the mayonnaise market and 11.3 percent of the market for toilet soap. Its estimated proceeds for 2006 are 9.8 billion rubles.
Wilmar and the Nizhny Novgorod Oil and Fat Combine group are long-time trading partners. Observers say that Wilmar is following a tried pattern – forming a joint venture, then buying out its partner. The Singaporean company acted thus to obtain Delta Exports, the Ukrainian subsidiary of Wilmar Delta CIS. The oil market in the 2006-2007 season is estimated to be worth $5 billion.
www.kommersant.com
All the Article in Russian as of Nov. 22, 2007
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