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WILMAR International Limited (Wilmar) said on Monday that its wholly owned subsidiary Wilmar Kuantan Edible Oils Sdn Bhd has entered into an agreement with Cargill Palm Plantation Sdn Bhd (Cargill) for the purchase of Cargill's edible oil facilities in Kuantan, Malaysia.
The edible oil facilities include a palm oil refinery and a neighbouring storage facility.
The transfer of ownership is expected to occur by the end of 2018, after approval from all relevant authorities and certain conditions being fulfilled.
Yee Chek Toong, Wilmar's country head for Malaysia, said that the acquisition of the Kuantan edible oil facilities marks the group's first presence in the east coast of Peninsular Malaysia.
"The facilities are a good fit with our refining business, and will strengthen our sales and distribution network in Malaysia," Mr Yee said. "Besides serving the local market, the facilities' strategic location in the Kuantan Port is an advantage for regional exports."
Chai Wei-Joo, managing director of Cargill's palm oil business in Malaysia, said: "While we have made the strategic business decision to sell the Kuantan facilities, Cargill remains committed to our edible oil business in Malaysia and will continue operations at our two other facilities in Port Klang and Westport."