MINNESOTA: Cargill Inc agreed to sell its Malaysian animal feed producer to a local poultry farmer as the world’s largest agricultural commodities trader continues with a reorganisation of its global business.
The decision to sell came after a “thorough review of long-term” priorities, and the deal is expected to close by the end of November, according to a statement from Cargill.
A unit of CAB Cakaran Corp will pay RM231 million (US$$54 million) in cash for the feed maker, a separate filing shows.
Cargill is undergoing a restructuring and streamlining into three main divisions — food, agriculture and trading — recently exiting from its Vietnam aquaculture business.
The Malaysian animal feed maker has the capacity to produce about 400,000 tonnes a year, according to the CAB statement.
CAB is an integrated poultry farming and food processing company with operations spanning across Peninsula Malaysia, according to its website.