KUALA LUMPUR (Feb 13): Singapore-listed Wilmar International Ltd is in preliminary talks to acquire the oleochemicals business of Malaysia?s plantation-based conglomerate Sime Darby Bhd., executives familiar with ongoing negotiations say.
The agriculture-based powerhouse has indicated its interest to acquire Sime Darby?s 50 per cent interest in Emery Olechemicals.
Pricing details remain sketchy and the deal faces major hurdles, the executives say.
Among other things, the deal must get the approval of Thailand?s energy group PTT Global Chemical, which holds the remaining 50 per cent in Emery. And that prospect appears unlikely.
Bankers say that PTT Global, which is Thailand's largest petrochemical maker, has pre-emption rights in the event of any planned divestment by Sime Darby.
What?s more, the Thai company has long been keen to takeover complete control of Emery.
(Note: This story first appeared in The Edge Review?s Market Intelligence Report section last
