STAR BUSINESS REPORT

Shun Shing Edible Oil has officially merged with Bangladesh Edible Oil, giving the latter a bigger edge in operating in the country’s edible oil market where annual sales amount to around 30 lakh tonnes.

Bangladesh Edible Oil, a joint venture of Wilmar International of Singapore and Adani Group of India, is one of the 11 major players operating in the market.

And four companies -- TK Group, City Group, S Alam Group and Meghna Group – account for most of the sales in the market, roughly 90 percent of which is based on imports.

Shun Shing Edible Oil was established in 2010 in Mongla, a port town in the southwestern coast of Bangladesh, with an annual edible oil refining capacity of 3 lakh tonnes.

Bangladesh Edible Oil had first acquired Shun Shing Edible Oil and its brands – Veola and Olein – for refined soya and super-refined olein in 2016 for Tk 150 crore, a senior official of the former said earlier.

In an announcement last Thursday, Bangladesh Edible Oil said all businesses and operations of Shun Shing Edible Oil have been transferred to it as a result of the June 3 merger.

“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,” it added.

A top official of another leading edible oil importer and processor said the merger would give an edge to Bangladesh Edible Oil to market its cooking oil in the southwestern region of the country.

In its announcement published in newspapers last week, Bangladesh Edible Oil said it has emerged as the surviving entity following the merger.

It also said there would be no disruption in the supply chain or customer services during this transition period.

“Going forward, all products of SSEOL (Shun Shing Edible Oil Limited) will be marketed and sold under the banner of BEOL (Bangladesh Edible Oil Limited),” it said.

Mohd Dabirul Islam Didar, head of finance and accounts at Bangladesh Edible Oil, could not be reached for comments despite repeated attempts.