The largest sugar cane miller in Australia, Wilmar International Ltd has purchased 27.5% stake in Moroccan supplier Consumar SA. The original owner of the shareholdings was Societe Nationale d'Invesstissement and the move was designed to expand the market of the company.
The Australian sugar producer purchased the shareholdings in the third largest sugar producer in Africa for 2.3 billion dirhams or US$263 million. The payment would be funded internally together with bank loans. Another 26.5% would be sold to Moroccan institutional investors lead by Wilmar, resulting in a 54% controlling stake in Consumar.
In purchasing Consumar, Wilmar gains an additional 1.6 million metric tons of sugar production as well as adds on refineries it already has located in Australia, Indonesia and New Zealand. According to Wilmar Chief Financial Officer last February 22, the company is seeking out sugar and oil palm assets in Myanmar and in Africa.
In a statement, Wilmar CEO Kuok Khoon Hong said, "Our investment in Consumar gives us a significant presence in the Western hemisphere and is part of our overall strategy to develop a world class sugar business."
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