After the merger, Wilmar will emerge as one of the largest integrated producers, refiners and merchandisers of vegetable oils in the world, essentially riding on the back of increasing palm oil market share in the Chinese edible oil market; a gradual decline in oilseeds productivity and growing population of India; as well as increasing use of oleochemicals as prime substitute in rising cost of mineral oil ? including methyl ester or biodiesel. Going forward, the management indicated that the company plans to continue expanding its capacities to meet growing world demand for palm and soya-based products.

Wilmar is expected to extract significant synergies from its proposed acquisitions. Cost synergies stem from savings on freight costs as the company consolidates its freight requirements, pricing power in China as the company will control top 4 of the top 5 branded consumer oils and revenue synergies as it begins to also market grains in China. More significantly, further revenue synergies are to be obtained as the company will use its distribution network to also market grains and agricultural products. The Kuok group is already one of the largest flour merchants in Malaysia, supplying 40% of the country?s requirements (via FFM Group, part of  PPB Group). The group also operates one of the largest sugar refineries in Malaysia with a 50% share in local market. The larger Wilmar group will have the scale and expertise to add on other soft commodity products on to its oil distribution network. Wilmar also plans to expand in other geographies such as Europe, India and Africa and it adjacent areas such as renewable energy business.