KL Kepong buys Sime Darby's German oleochemical unit for RM162m

PETALING JAYA: Kuala Lumpur Kepong Bhd (KLK) is buying Sime Darby Bhd's oleochemical unit in Germany for €40.5 million (RM162 million) cash.
In a stock exchange filing yesterday, KLK said it had signed a conditional to buy Emery Oleochemical GmbH's plant, tangible assets and inventories directly associated with the oleochemical business in Holhausen, Dusseldorf, Germany.
"The proposed transaction will complement KLK Group's existing fatty acids and glycerine business and enable it to diversify into the tallow-based market," KLK said.
As part of the deal, KLK will also acquire both the production know-how and trade name for Triacetin products to enhance the group's worldwide presence and positioning.
The transaction was scheduled for completion by the third quarter of this year.
Emery Oleochemicals (M) Sdn Bhd owns 100% of Emery Oleochemical GmbH via Emery Oleochemicals UK Ltd. Emery Oleochemicals UK is equally owned by Sime Darby Plantation Sdn Bhd and PTT Chemical International Private Ltd.