Olam (O32.SG) may slip as news of acquisition of Nigerian wheat miller Crown Flour Mills (CFM) may not be enough to excite amid likely lackluster broader market, says Down Jones.

Commodity supply chain manager plans to buy CFM for US$107.6 million ($149 million), among the three largest wheat millers in Nigeria, supplying bread flour, noodle flour and semolina to industrial users, wholesalers.

Olam says the deal meets its strategic objective of establishing wheat facilities in Africa. “Nigeria, being one of the largest wheat importing countries in the world, is our priority anchor market for executing this strategy.”

OCBC Investment Research says the acquisition “is in line with Olam’s inorganic growth strategy and could possibly reap synergistic benefits with the group’s existing businesses.”

OCBC has kept its “buy” rating, $3.33 target price.