SINGAPORE (Nov 20): Wilmar International announced Monday that wholly-owned subsidiary Wilmar Kuantan Edible Oils has entered into an agreement to purchase Cargill Palm Plantation’s edible oil facilities in Kuantan, Malaysia.

The purchase consideration for the edible oil facilities, which include a palm oil refinery and a neighbouring storage facility, was not disclosed.

In a statement on Monday, Wilmar says the sale will be completed upon approval from all relevant authorities and certain conditions being fulfilled. The transfer of ownership is expected to occur by the end of 2018.

“The acquisition of the Kuantan edible oil facilities marks our first presence in the east coast of Peninsular Malaysia,” says Yee Chek Toong, Wilmar’s country head of Malaysia. “The facilities are a good fit with our refining business and will strengthen our sales and distribution network in Malaysia.”

“Besides serving the local market, the facilities’ strategic location in the Kuantan Port is an advantage for regional exports,” Yee adds.

Chai Wei-Joo, managing director of Cargill’s palm oil business in Malaysia, says the group remains committed to its edible oil business in Malaysia and will continue operations at its two other facilities in Port Klang and Westport.

Shares of Wilmar closed 2 cents lower at $3.14 on Monday.