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Posco trading arm acquires Indonesia's Sampoerna Agro for $884M to expand global biofuel business

Published: 20 Nov. 2025, 13:11 Updated: 20 Nov. 2025, 17:06

This photo provided by Posco International shows a palm oil plantation operated by Indonesian palm oil producer Sampoerna Agro. [YONHAP]

Posco International, the trading arm of Posco Group, said Thursday it has acquired Indonesian palm oil producer Sampoerna Agro in a deal worth about 1.3 trillion won ($884.7 million) to expand its global biofuel business.

Posco International made the investment to acquire a controlling stake in Sampoerna Agro on Wednesday to become the largest shareholder of the Jakarta-listed company, it said in a regulatory filing.

The Korean firm described the acquisition as a strategic investment to strengthen its global palm oil value chain.

Sampoerna Agro operates palm plantations across the Sumatra and Kalimantan islands in Indonesia, and owns a major seed production subsidiary and an agriculture research institute.

Through the deal, Posco International adds 316,295 acres of palm plantations to its Indonesian agro portfolio. Combined with its existing operations in Indonesia, the company now controls a total of 370,658 acres of palm plantations.

Posco International entered the palm business in 2011 and currently runs three palm oil plants in the Indonesian province of Papua, capable of producing 210,000 tons of palm oil annually.

Yonhap