Corbion completes acquisition of Bunge's stake in SB Renewable Oils JV

636636966822488594oil.jpg

04 Jun 2018 --- Corbion has completed the acquisition from Bunge Limited of Bunge's stake in the SB Renewable Oils joint venture. Back in February 2018, Corbion initially confirmed that it was in discussions with Bunge about the potential acquisition of Bunge’s stake in the SB Renewable Oils joint venture.

Bunge disclosed the talks as part of its strategic update, which shows some pressure on the 200-year-old company which was also approached by Archer Daniels Midland (ADM) as part of a takeover bid.

Corbion has now officially acquired Bunge's 49.9 percent stake in SB Renewable Oils, a joint venture that operates a facility in Brazil, specializing in the production of algae ingredients, such as Omega 3 rich oil, for aquaculture and animal feed. Corbion now is 100 percent owner of the plant in Orindiúva, which employs around 170 staff. 

“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,” notes Tjerk de Ruiter, CEO Corbion.

Corbion has assumed Bunge's share in the external debt of the joint venture, including accrued interest (BRL 57 million equates to US$15 million) and has repaid Bunge's working capital loan (BRL 29 million equates to US$8 million). Additionally, a 5-year earn-out provision starting in 2021 has been agreed to. This earn-out is based on sales of AlgaPrime DHA, with a maximum present value of US$20 million. As the SB Renewable Oils plant is located adjacent to one of Bunge's sugar mills, long-term supply agreements have been secured regarding sugar and utilities. Approval by the relevant regulatory bodies in Brazil has been obtained.

Additionally, in September 2017, Bunge announced its plans to strengthen its edible oil presence with a US$946 million deal to acquire a 70 percent controlling ownership interest in IOI Loders Croklaan. You can read the full story here

According to Bunge, these transactions expand the companies’ “value-added capabilities, reach and scale across core geographies” to establish itself as a global leader in business-to-business oil solutions.

Speaking in the February edition of our sister publication The World of Food Ingredients, Senior Vice President for Food at Corbion, Ruud Peerbooms discussed other acquisitions and innovations that are driving growth such as the potential market for meat alternatives and the recent TerraVia acquisition.

“If you want to be there that means that you basically need to be active in alternative proteins, which is what they can deliver. So besides the business, we have today in TerraVia, which is in DHA enrichment for feed, part of their portfolio delivers all kinds of alternative protein sources are available,” he says.

“Today their DHA business is fully-scaled, through their joint venture with Bunge, with DHA-rich algae that is mainly used in the aquaculture space. All of the rest is still in development.” 

To contact our editorial team please email us at editorial@cnsmedia.com

Related Articles

Food Ingredients News

Corbion launches vinegar-based mold inhibitor

11 Sep 2018 --- Corbion has launched Verdad MP100, a natural mold inhibitor, which matches calcium propionate for mold control and tops competing clean-label solutions.

Food Ingredients News

Bunge Loders Croklaan launches first clean label liquid margarine

10 Sep 2018 --- Bunge Loders Croklaan is launching its new, next-generation, liquid margarine: Delica Pro Gold. The plant-based, clean-label margarine for artisanal and industrial bakeries will be featured for the first time at IBA in Munich, later this month.

Food Ingredients News

Weekly Roundup: Nestlé revives Zimbabwe's coffee industry, Corbion achieves sustainability rating from Ecovadis

07 Sep 2018 --- This week, Nespresso, an operating unit of the Nestlé Group, announced a long-term investment plan to help revive Zimbabwe’s coffee industry and stimulate the rural economy. DuPont Nutrition & Health has been recognized for clean label innovation in Brazil. Corbion has achieved a gold sustainability rating from Ecovadis and TIC Gums has added to their Non-GMO Project Verified Portfolio. Also this week, Nestlé completed the acquisition of a majority stake in Terrafertil and UK-based Finsbury Food Group acquired Ultrapharm for £17 million (US$21.9 million).

Food Ingredients News

Bunge Loders Croklaan launches low 3-MCPDE level palm oil portfolio

28 Aug 2018 --- Ahead of European legislation, producer of premium quality vegetable oils and fats Bunge Loders Croklaan, can now offer its entire palm oil food portfolio with low 3-MCPDE levels, in addition to its already available low Glycidyl Esters (GE) portfolio.

Business News

Weekly Roundup: ADM completes Rodelle buy, Disruptive Asian start-ups to reduce food loss

24 Aug 2018 --- In business news this week, ADM completed its acquisition of Rodelle Inc., a premium originator, processor and supplier of vanilla products. An external evaluation of The European Food Safety Authority (EFSA) welcomed new mechanisms for engagement with stakeholders, initiatives in the field of access to data and a strengthened independence policy. Also this week, Rabobank launched a competition for disruptive Asian start-ups to reduce food loss.

More Articles