USA – The Dutch food and biochemical company Corbion N.V has announced it has completed the acquisition of Bunge’s stake in the Orindiúva, Brazil based SB Renewable Oils JV.
This involves a 49.9% stake held by Bunge in the joint venture which specialises in the production of algae ingredients, such as Omega 3 rich oil, for aquaculture and animal feed.
Corbion now becomes the sole (100%) owner of the plant which employs around 170 staff after receiving approval by the relevant regulatory bodies in Brazil
As part of the transaction, Corbion assumes Bunge’s share in the external debt of the joint venture, including accrued interest of US$15 million and has repaid Bunge’s working capital loan of US$8 million.
“We are delighted to welcome the team in Orindiúva as part of our global family. They are a pivotal part of our Algae Ingredients business, the innovative platform we acquired last year.
We are strongly committed to developing this line of business,” said Tjerk de Ruiter, CEO Corbion.
Corbion has agreed to a 5-year earn-out provision starting in 2021 based on sales of AlgaPrime DHA, with a maximum present value of US$ 20 million.
They also agreed on long term supply agreements regarding sugar and utilities given that the SB Renewable Oils plant is located adjacent to one of Bunge’s sugar mills.
In February, Bunge Ltd revealed in its fourth quarter results announcement that it was holding talks with Corbion to sell its stake in their renewable oils venture.
Then, reports emerged that the move by Bunge was in line with plans to change its portfolio as announced in its fourth quarter results.
It was at this time that the American agribusiness and food company was reported to be succumbing to pressure when approached by Archer Daniels Midland (ADM) for a possible takeover bid.
In September 2017, the company announced its plans to strengthen its edible oil presence with a US$946 million deal to acquire a 70controlling ownership interest in IOI Loders Croklaan.
Bunge said the transactions were geared at expanding the companies’ value-added capabilities, reach and scale across core geographies.