Wilmar and ADM's Olenex joint venture to market oils, fats in Europe gets approval

AGRI-BUSINESS group Wilmar said on Friday that its partnership with Chicago-based commodities trading company Archer Daniels Midland Company (ADM) to market oils and fats in Europe has received the green light.

Known as Olenex, the partnership has received "all required competition approvals", and will become a full-function joint venture (JV) with its own assets, said Wilmar and ADM.

Both companies "anticipate formally launching the new venture in the coming weeks".

Under the agreement, ADM will transfer two sites - a speciality oils and fats facility and a palm refining plant in Hamburg, Germany - to the new JV. Wilmar will transfer its tropical oils processing plants in Brake, Germany and Rotterdam, the Netherlands, to the new JV. In addition to processing, the JV will integrate raw materials sourcing, trading, and sales and marketing operations.

Olenex will also be conducting marketing activities for all refined oils and fats produced from ADM's other plants in the Czech Republic, Germany, the Netherlands, Poland and the UK.