Global agri and food company Bunge Limited acquired on 12 September a 70% ownership interest in specialty oil firm IOI Loders Croklaan in a US$946M deal that would expand Bunge’s portfolio in tropical oils.

Loders was an established player in the US$33bn semi-speciality and speciality business-to-business oil market with a full range of palm and tropical oil-derived products and a focus on confectionery, bakery and infant nutrition applications, Bunge said in a statement.

The company served food industry customers in more than 100 countries and generated US$1.6bn in revenues in the 2016 fiscal year.

“Together with Loders, we will have a comprehensive product offering derived from seed and tropical oils, with leading innovation, application capabilities and sustainability programmes,” said Bunge CEO Soren Schroder.

The transaction would combine Bunge’s upstream capabilities and existing seed oils portfolio with Loders’ high-end products from tropical oils, including palm, coconut and shea, Bunge said.

The deal would also give Bunge access to Loders’ intellectual property portfolio of more than 300 patents and technical centres in Malaysia, the Netherlands and the USA, in addition to diversifying Bunge’s presence particularly in Southeast Asia, where it expected to quadruple its revenues following the acquisition.

Bunge and Loders were expected to close the transaction within the next 12 months, subject to customary closing conditions and regulatory approvals.