Bunge acquires controlling stake of German oil supplier Walter Rau

By Niamh Michail contact

- Last updated on GMT

Bunge has acquired a 62.8% controlling stake in a German edible oil and fat manufacturer. © iStock
Bunge has acquired a 62.8% controlling stake in a German edible oil and fat manufacturer. © iStock

Related tags: Soybean, Bunge

Agri-food giant Bunge will buy a controlling stake in edible oils and fats supplier Walter Rau Neusser Öl und Fett in a bid to continue growth in Europe

The deal, which is expected to close in the coming months, will give the world’s largest oilseed processor ownership of 62.8% of the company which were previously held by the Cremer Group.

Located in Neuss, Germany, Walter Rau Neusser Öl und Fett has a capacity of around 200,000 tonnes a year, making it a relatively small but nonetheless “significant​” acquisition for Bunge given the company’s solid reputation and professionalism, a spokesperson for the company told us.

CEO of Bunge EMEA, Tommy Jensen, said the acquisition would allow Bunge to expand its product offerings while leveraging its extensive knowledge and geographic reach in oilseed crushing and refining.

“We are excited to combine Walter Rau Neusser Öl und Fett’s B2B capabilities and Bunge’s network to continue to grow our business in Europe and globally,” ​he added.

Details of the price paid were not disclosed.

In 2008 New York-based Bunge acquired B2C manufacturer​ of margarine and dressings Walter Rau Lebensmittelwerke, independent of Walter Rau Neusser Öl und Fett since restructuring took place in 1999.

Challenging

In Bunge's full year financial results for 2015, the company said oilseed was a challenging sector given current market conditions, while in February this year it posted lower-than-expected fourth quarter earnings. 

“Northern Hemisphere grain exports and oilseed processing margins, particularly European rapeseed, will be challenged until world supply and demand comes into better balance.

"This should be helped by the fact that our markets are responsive and global demand for soy meal and soy oil is growing,” ​said a statement issued following the 2015 results.

It said it managed to offset challenging conditions in Ukraine and Russia with new product launches and improved productivity, dealing in 6,831 thousand metric tonnes of edible oils and making a gross profit $404 million (€357m) for this category.

Bunge has net sales worth around $58bn (€51.3bn) and operates in over 40 countries.

It will post results for the first quarter of 2016 next Thursday (28 April). 

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