PETALING JAYA: Guan Chong Bhd, the world’s fourth-largest cocoa grinder, is strengthening its presence in the global chocolate supply chain by acquiring a 25% stake in an Ivorian cocoa ingredients producer for RM130.1 million from Conseil Du-Café-Cacoa (CCC), the Coffee-Cocoa Council of Ivory Coast.
The group through subsidiary GCB Cocoa Singapore Pte Ltd, signed a share sale and asset contribution agreement to acquire the stake in Transcao Côte d'Ivoire (Transcao CI) from CCC. The purchase consideration for the acquisition will be satisfied by cash funded via internally generated funds and banking facilities.
With the acquisition of the stake in Transcao CI, Guan Chong will jointly manage the operations of two cocoa grinding factories in Abidjan and San Pedro. The current combined capacity of these factories is 80,000 tonnes a year.
Guan Chong managing director and CEO Brandon Tay Hoe Lian said: “The acquisition of Transcao CI is a key step in GCB’s growth strategy, reinforcing our position as a global leader in the chocolate supply chain. It also underscores our commitment to supporting Ivory Coast’s vision, alongside CCC, in advancing the country’s strategy for industrialising its cocoa sector.”
“This partnership between GCB and CCC signifies the Ivorian council’s confidence in our four decades of expertise in the cocoa processing business. United by a shared vision, we are committed to harnessing our strengths to deliver premium Ivory Coast cocoa ingredients to customers across the globe.
“Looking ahead, we are dedicated to shaping a stronger and more sustainable future for the cocoa industry and the communities it supports. Simultaneously, GCB remains steadfast in addressing the challenges of high cocoa bean prices, ensuring the resilience and sustainability of our operations spanning Malaysia, Indonesia, Ivory Coast, the United States, German, and the United Kingdom.”
Guan Chong will act as a strategic partner to support Transcao CI’s development and implementation strategy of its operations. Transcao CI’s is principally involved in cocoa processing; manufacturing and distributing of finished products, creating added value to boost farmers’ income, and promoting local and regional consumption.
The RM130.1 million payment for the 25% stake in Transcao CI consists of two parts, RM35.3 million for share sale and RM94.8 million for asset contribution. The deal is expected to be completed by the second quarter of 2025.
Transcao CI is a private limited company incorporated in Ivory Coast, with the majority of its shareholding held by the CCC, a government regulator responsible for the regulation and development of Ivory Coast’s cocoa and coffee sectors. CCC oversees Ivory Coast’s annual cocoa bean production of approximately 2 million tonnes, which accounts for around 40% of the global supply.
Transcao Negoce is a private limited company holding a minority shareholding in Transcao CI, and a subsidiary of CCC.
