Kuala Lumpur Kepong (KLK) signed a conditional agreement to buy the plant, tangible assets and inventories of Emery Oleochemical GmbH in Germany, a unit of Sime Darby, for EUR 40.5 million in cash. KLK said the deal would let it diversify into tallow-based products and complement its fatty acid and glycerine business, with completion targeted for the third quarter.
The acquisition adds tallow-based oleochemical processing capacity, a modest signal of added demand for animal fat feedstock that could slightly firm tallow values over time.
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