Halcyon Agri acquires commodities trader RCMA's polymer division for up to US$33.8m

SINGAPORE - Natural rubber supplier Halcyon Agri is buying commodities trader RCMA Group's polymer division for around US$33.8 million.

The group told the Singapore Exchange on Tuesday that the acquisition provides it with the opportunity to create one of the world's largest distribution hubs for latex and specialty 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 euros (S$308.24 million).

It is expected to be completed early 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.

Halcyon Agri executive director and chief executive 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 "whilst 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 and its employees."

Halcyon Agri shares closed 0.5 cents up at 58.5 cents on Tuesday.