Global agribusiness giant Cargill has agreed to acquire the majority of speciality chemical company Croda’s performance technologies and industrial chemicals business for US$1.03bn.

Cargill said on 22 December that the Croda acquisition would expand the company’s bio-industrial presence, particularly in Asia, Europe and the USA.

The transaction, which is subject to regulatory approvals, is expected to close this summer.

“The bio-industrial space is a priority for Cargill, as we strive to support our customers with innovative, nature-based solutions that deliver real-world benefits,” Colleen May, president of Cargill’s Bio-industrial business said.

“Combining our diverse, global supply chain and deep operational expertise with Croda’s extensive industrial business capabilities and broad bio-based portfolio will spark a new wave of innovation and create tremendous value for our customers.”

Under the agreement, Cargill said it would gain production facilities across Europe and Asia, along with a technology portfolio in the automotive, polymer and food packaging sectors.

In line with Cargill’s commitment to sustainability, the company said that more than two-thirds of the raw materials used to manufacture these solutions would be bio-based and renewable.

The acquisition followed other recent moves by Cargill to expand its presence in the bio-industrial sector, including its acquisition of Floratech, a leading provider of natural emollients and derivatives for beauty and personal care applications, and Arkema’s epoxides business.

According to its website, Croda produces and sells speciality chemicals for a range of sectors including consumer care, life sciences and performance technologies.