, Singapore

Olam among top 3 global cocoa processors after ADM acquisition

It has a global market share of 16%.

Olam’s US$1.3b acquisition of Archer Daniels Midland Company’s global cocoa business is a very strategic expansion of its cocoa platform.

According to a report by DBS, post the transaction, Olam will be among the top 3 global cocoa processors with a 16% global market share in the US$16b processing market, where demand growth is expected to accelerate from 3% p.a. to 3.4-4.3% in the coming decade.

Analysts at DBS add that as a integrated player with substantial presence in the sourcing and now the processing segment of the cocoa value chain, Olam should derive higher profits through greater scale and better procurement. 

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