Sime Darby Bhds (A3 stable) acquisition of New Britain Palm Oil Ltd (NBPOL, unrated), if successful, will increase the scale and geographic diversity of Sime Darbys sizable plantation segment, says Moodys Investors Service. The ratings agency said on Monday the purchase would widen its competitive advantage in the upstream plantations segment, as against the rest of the industry. At the same time, leverage metrics are expected to be stretched for the rating, though should recover quickly. Sime Darby is already the worlds largest upstream crude palm oil producer. The acquisition would increase its planted area by 15%. By comparison, the next largest players are Felda Global Ventures and Golden Agri-Resources, said a Moodys vice president and senior credit officer Alan Greene. The report, entitled “Sime Darby extends lead in crude palm oil with NBPOL purchase,” and is co-authored by Greene and Dylan Yeo, an Associate Analyst.
Posted on: Mon, 13 Oct 2014 06:22:02 +0000
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