Halcyon Agri buying RCMA's polymer division for $46m

A Halcyon Agri facility in Palembang, Indonesia. Natural rubber is formed into blankets as part of the process of making Standard Indonesian Rubber. The purchase of commodities trader RCMA's polymer business is in line with Halcyon Agri's strategy to
A Halcyon Agri facility in Palembang, Indonesia. Natural rubber is formed into blankets as part of the process of making Standard Indonesian Rubber. The purchase of commodities trader RCMA's polymer business is in line with Halcyon Agri's strategy to expand the depth and breadth of its operations, says its CEO Robert Meyer.PHOTO: HALCYON AGRI

This means natural rubber supplier could build one of the largest distribution hubs for latex, speciality tyre rubber

Natural rubber supplier Halcyon Agri is buying commodities trader RCMA Group's polymer division for around US$33.8 million (S$45.8 million).

The group told the Singapore Exchange yesterday that the acquisition provides it with the opportunity to create one of the world's largest distribution hubs for latex and speciality tyre rubber.

The acquisition, which will be funded by internal resources, comes less than a month after the completion of Halcyon Agri's disposal of its 35 per cent stake in Siat for €192.56 million (S$305.8 million).

It is expected to be completed in January if certain conditions are met and approvals secured.

The polymer division produces natural rubber and latex, synthetic rubber, chemicals and reclaimed rubber and provides laboratory and certification services, the companies said.

This is "a move to gain an 'immediate' foothold in the synthetic rubber market", Halcyon Agri said. Itsexecutive director and CEO Robert Meyer said: "The acquisition is in line with our strategy to expand the depth and breadth of our operations."

RCMA chief executive Chris Pardey noted that "while the polymer business has been a core business of the RCMA for many years, this divesture... will secure the long-term future of that business."

Halcyon Agri shares closed 0.5 cent up at 58.5 cents yesterday.

A version of this article appeared in the print edition of The Straits Times on November 22, 2017, with the headline 'Halcyon Agri buying RCMA's polymer division for $46m'. Print Edition | Subscribe