Singapore-based Olam in talks with French rival
Singapore-based commodities trader Olam International said Friday it held "preliminary confidential discussions" with French rival Louis Dreyfus Commodities that could lead to a merger.
In a statement to the Singapore Exchange where it is listed, Olam stressed that the talks were still in their preliminary stage.
Olam told its shareholders that "it had engaged in preliminary confidential discussions with Louis Dreyfus Commodities in relation to a possible business collaboration which may take the form of, among others, a merger".
It emphasised however that that the talks "are still preliminary and that no definitive agreements in relation to the possible collaboration have been entered into as at the date of this announcement".
The company, a leading global supplier of agricultural products and food ingredients, added that the "possible collaboration may or may not proceed".
Olam shares surged more than 7.0 percent to 3.16 Singapore dollars Friday on the news.
The firm said it constantly reviews opportunities in line with its growth strategy, and some of these are in the nature of acquisitions and joint ventures.
But these opportunities were still at different stages "and there is no certainty that any of them will materialise", it said.
© 2010 AFP