You're reading: Glencore expands presence in Ukraine with $80 million acquisition

Marking one of the largest recent merger and acquisition deals in Ukraine's agricultural sector, international commodity giant Glencore International has acquired a 100 percent stake in the sunflower seed crusher Kolos.

According to informed sources the deal is worth $80 million and is set to further boost Ukraine’s agro sector. Ukraine is currently the world’s top sunflower oil exporter.
Kolos is located near Kharkiv, in Ukraine’s so-called sunflower belt, where it operates a plant with an annual crushing capacity of 200,000 metric tons. An expansion of this capacity, to 280,000 tons, was commissioned on completion of the transaction.
“The Kolos sale has been successfully closed despite challenging market conditions,” Igor Bilous, co-CEO of Renaissance Capital in Ukraine, said in a March 7 press release. Renaissance Capital served as an advisor the selling-side on the sale.
Glencore’s previous holdings in Ukraine include an 80 percent stake in a sunflower seed crushing plants with an annual capacity of 250,000 tons, a grain terminal in Odesa region, and a number of smaller farming outfits.
Currently in merger talks with mining giant Xstrata, Swiss-based Glencore is one of the world’s leading commodities trading houses.
Kyiv Post staff writer Jakub Parusinski can be reached at [email protected].