Shun Shing Edible Oil merges with Bangladesh Edible Oil
On July 4, Shun Shing Edible Oil Ltd (SSEOL) merged with Bangladesh Edible Oil Ltd (BEOL), enhancing BEOL’s market presence in Bangladesh’s 30 lakh-tonne cooking oil sector. The High Court approved the merger on February 13, 2024. BEOL, a joint venture between Singapore’s Wilmar International and India’s Adani Group, now integrates SSEOL’s operations, including its brands Veola and Olein. This consolidation positions BEOL to strengthen its market position and streamline its supply chain, with all SSEOL products now marketed under the BEOL banner.
Shun Shing Edible Oil Ltd (SSEOL) has finally merged with Bangladesh Edible Oil Ltd (BEOL), giving a higher edge to the BEOL to operate in the country’s cooking oil market of around 30 lakh tonnes.
In an announcement on July 4, the BEOL, a foreign-owned joint venture between Wilmar International Limited of Singapore and Adani Group of India, said all businesses and operations of SSEOL have been transferred to BEOL as a result of the merger as of June 3, 2024.
The disclosure came nearly four months after the High Court (HC) on February 13 this year approved the amalgamation of SSEOL with BEOL.
“This merger marks a significant milestone in the edible oil industry of Bangladesh, aimed at consolidating our business operations and enhancing efficiency in a competitive environment,” said the BEOL.
BEOL is one of the major players in Bangladesh’s edible oil market with 11 companies operating.
And four companies– TK Group, City Group, S Alam Group and Meghna Group — control most of the market, roughly 90 percent of which is imported based.
SSEOL was established in 2010 in Mongla, a port town of the southwest coast, with 3 lakh tonnes annual edible oil refining capacity.
BEOL acquired SSEOL and its brands – Veola and Olein – for refined soya and super-refined olein in 2016 for Tk 150 crore, a senior official of the BEOL said earlier.
A top official of another leading edible oil importer and processor said the merger would give an edge to BEOL to market its cooking oil in the southwest region.
In its announcement published in newspapers last week, the company said the BEOL emerges as the surviving entity following the merger of SSEOL with it.
BEOL said there will be no disruption in the supply chain or customer services during this transition period.
“Going forward, all products of SSEOL will be marketed and sold under the banner of BEOL,” it said.
Mohd Dabirul Islam Didar, head of finance and accounts at BEOL, could not be reached for comments despite repeated attempts.
Source Link : https://www.thedailystar.net/business/news/shun-shing-edible-oil-merges-bangladesh-edible-oil-3650356
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