Leading Asian agribusiness Wilmar International has formed a new 50:50 joint venture with Tropical General Investments Group (TGI Group).
The joint venture would combine the companies’ respective Nigerian and Republic of Benin operating businesses into a single integrated platform, Wilmar said on 2 June.
Bringing together the companies’ upstream agriculture, oil palm plantations, edible oils, edible nuts, rice, culinary, food manufacturing and nationwide distribution activities, the combined platform would have a market size of over US$12bn across the focus categories in the two regions.
The venture would combine consumer brands, processing capacity, local operating capabilities and route-to market infrastructure across West Africa, to create an integrated business with scale across the agricultural value chain from cultivation and processing through refining, manufacturing and branded consumer distribution, Wilmar said.
Commenting on the transaction, Kuok Khoon Hong, chairman & CEO of Wilmar, said: “The combination of Wilmar’s integrated palm oil and speciality fats capability and its global scale in food staples and consumer goods - with TGI Group’s manufacturing scale, consumer brands and nationwide distribution platform - creates a … business to serve African consumers and to contribute to the long-term development of the region.”
The combined businesses would be held by a Singapore holding company jointly owned by Wilmar and TGI Group on an equal shareholding basis.
Completion of the transaction was subject to customary conditions, including receipt of relevant merger control and regulatory clearances, and was expected to take place during the financial year ending 31 December 2026.
Headquartered in Singapore, Wilmar International is Asia’s leading agribusiness group.
The group’s business activities include oil palm cultivation, oilseed crushing, edible oil refining, flour and rice milling, sugar milling and refining, manufacturing of consumer products, ready-to-eat meals, central kitchen products, speciality fats, oleochemicals, biodiesel and fertilisers as well as food park operations.
It has over 1,000 manufacturing plants and an extensive distribution network covering China, India, Indonesia and around 50 other countries and regions.
TGI Group is a diversified conglomerate with over four decades of operating history in Nigeria and the wider West African region and other areas.
The group’s activities include agriculture, food processing, fast moving consumer goods (FMCG) manufacturing, distribution, chemicals, poultry farming, real estate and financial services.
