Malaysian Sime Darby to acquire NBPOL

KUALA LUMPUR, Oct 9 (AFP): Malaysian palm-oil giant Sime Darby said Thursday it had made an offer to acquire Papua New Guinea's UK-listed New Britain Palm Oil (NBPOL) in a $1.7 billion deal.

The acquisition would give Sime Darby, the world's largest listed palm oil producer by acreage, control of one of the world's biggest producers of sustainably produced palm oil.

NBPOL also is a key supplier to the growing European market.

The deal reflects a growing push by producers to increase capacity as demand for palm oil soars worldwide.

One of the most versatile and cheaply produced edible oils, palm oil is a key ingredient in a vast range of products, from snack foods to shampoo to make-up.

Demand has fuelled rapid growth of the industry, particularly in world leaders Malaysia and Indonesia.

"This is a significant milestone for Sime Darby. We are acquiring a low-risk, well-managed, ongoing business concern that will add value to the group," Sime Darby said in a statement.

The acquisition will be made by its unit Sime Darby Plantation.

Sime Darby said NBPOL's directors had agreed to the deal.