Palm oil firm Golden-Agri takes over RCMA sugar arm in push to diversify (updated)

Golden Agri-Resources

01/11/2019 03:17

(Recasts with Golden Agri's confirmation, changes dateline)
    LONDON/SINGAPORE, Nov 1 (Reuters) - Palm oil plantation firm
Golden Agri-Resources Ltd  GAGR.SI  said it has agreed to take
over the sugar trading business of international commodities and
energy trader RCMA Group as part of its diversification
strategy.
    The takeover builds on Golden Agri's previous investments in
sugar trading in Europe in 2018 and reflects its intention to
diversify from being a pure palm player, the Singapore-listed 
company said in a statement on Friday. 
    "GAR (Golden Agri) has been looking for opportunities to
expand our agricultural trading beyond palm oil to create a more
diverse base for our business," said Paul Hickman, head of
global vegetable oil and oilseeds for Golden Agri.
    A Golden Agri spokeswoman said there were no financial
details to disclose as the company was absorbing the RCMA team
and there was no transfer of assets.
    RCMA's sugar division is a leading player in the white sugar
containerized trading business. It is headed by Jonathan Drake
who joined the company is 2012 after a long career with Cargill.
    "The decision to transfer our sugar business is aligned with
RCMA Group's vision to become a diversified group with energy,
electricity and consumer goods and services," according to an
RCMA notice to clients seen by Reuters. 
    An RCMA representative at its Singapore headquarters said
the company would respond to a Reuters request for comment after
London opens for business.
    Reuters reported about the takeover earlier in the day,
citing the RCMA notice to clients.  urn:newsml:reuters.com:*:nL8N27G8IC
    Shares of Golden Agri were up 2.4%, while the broader market
 .STI  was down 0.2%.

 (Reporting by Nigel Hunt in London and Aradhana Aravindan in
Singapore; Editing by Himani Sarkar)
 ((nigel.hunt@thomsonreuters.com; +44 20 7542 8421; Reuters
Messaging: nigel.hunt.thomsonreuters.com@reuters.net))