Stable earnings: Given the volatile crude palm oil prices, KLK’s strategy to grow its downstream business could help to mitigate earnings volatility as demand for downstream products is generally more stable.
Kuala Lumpur Kepong Bhd
(KLK) is now close to acquiring a Netherland-based surfactant chemicals manufacturer as it seeks to strengthen its presence in the oleochemicals segment.
The move is rather unsurprising as the plantation giant has previously indicated its intention to actively pursue potential merger and acquisition opportunities, after its failed a RM2.3bil takeover bid of London-listed MP Evans Plc last year.
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