Posco International buys Indonesian palm oil company for biofuels for $818M

In South Korea, POSCO INTERNATIONAL has completed a full value chain in its palm oil business—from palm seed development to producing palm oil for biofuel feedstock—by acquiring Sampoerna Agro, one of Indonesia’s leading palm companies, and inaugurating a new palm oil refinery in the country on the same day.

On November 19, POSCO INTERNATIONAL acquired shares in the Indonesian listed company Sampoerna Agro, securing management control and becoming its largest shareholder. Intended to expand its global palm business value chain, the investment for this acquisition is estimated at approximately KRW 1.3 trillion, based on the exchange rate at the time of disclosure.

Through this acquisition, POSCO INTERNATIONAL has added 128,000 hectares of plantations, which is more than double the size of Seoul, and now possesses a total global farming base of 150,000 hectares, including its existing plantations in Papua, Indonesia.