Cargill has sold two oilseed processing plants in the Netherlands and France to international agribusiness Bunge for an undisclosed sum.
The acquisition will allow Bunge to expand its oilseed processing footprint in northern Europe and increase its presence in Europe’s protein market.
The agreement includes soybean and rapeseed crush facilities in the Port of Brest, France and Port of Amsterdam. The Amsterdam facility also includes a soybean oil refining facility and bulk port terminal assets for discharge and storage of raw materials. The total annual processing capacity for the facilities is roughly 2 million tons.
In March this year, a Rabobank report found that feed cost advantages for livestock operations in the Netherlands are being eroded compared to competition in Spain and Germany, putting pressure on the Dutch protein value chain, particularly in the pork sector. However, grain and oilseed input costs remained lower than those in Germany or Spain.
Cargill still holds two soybean processing facilities in western Europe, in Barcelona, Spain and Liverpool, UK.
The deal remains subject to closing conditions.