Wilmar unit enters joint venture deal with Associated British Foods

Hong Kong money-changer with yuan symbol signHong Kong money-changer with yuan symbol sign. Photo taken pre-Covid

Agribusiness Wilmar’s subsidiary Yihai Kerry Arawana Holdings entered a deal to form a 50:50 joint venture in China with Associated British Foods to make, sell and distribute yeast and bakery ingredients, the companies said in a filing to SGX Monday.

The joint venture will acquire ABF’s AB Mauri’s existing Chinese yeast and bakery ingredients activities, and will make use of Yihai Kerry Arawana’s supply chain, sales and distribution network and local market expertise in China, the filing said.

The Shanghai-based venture will build and operate a new yeast plant at Wilmar’s food processing plant in the Taha industrial zone in Qiqihar City, China, the filing said.

“The joint venture will … be well positioned to capture growth in both traditional Chinese bakery products and western-style baked products, consumer demand for which is expanding rapidly,” Wilmar and Associated British Foods said in the statement.

London-listed Associated British Foods is a diversified food, ingredients and retail group, with operations in sugar, agriculture, retail, grocery and ingredients.

AB Mauri has significant market positions in bakers’ yeast across the Americas, Europe and Asia, as well as supplying ingredients such as bread improvers, dough conditioners and bakery mixes.

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