Olam hunts for bolder deals after $2.7b spree

15.09.2016

Olam International, one of the world's largest food commodity traders, is targeting more acquisitions next year after a US$2 billion (S$2.73 billion) spree since late 2014 involving deals in cocoa, peanuts and wheat.

"We have enough dry powder to execute both our organic and inorganic growth strategy," chief executive officer Sunny Verghese said in an interview.

The global agribusiness is in the midst of a mergers and acquisition (M&A) boom that is reshaping the industry, coinciding with a slump in food commodity prices such as wheat, which is trading near a 10-year low. PotashCorp of Saskatchewan and Agrium announced a merger that would create the world's largest crop-nutrient supplier, while Glencore is selling stakes in its agriculture unit to Canadian pension funds for US$3.25 billion.


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