Neste closes on Agri Trading Corporation acquisition
In September 2021, Finland-headed oil refiner and renewable products major Neste Oyj announced that it had entered into an agreement to acquire 100 percent of Agri Trading Corporation (Agri Trading), one of the largest independent renewable waste and residue fat and oil traders in the United States (US), and its affiliate entities. The acquisition, the value of which has not been disclosed, has been approved by regulatory authorities, and the deal has been closed.
Founded in 1977, Minnesota (MN) based Agri Trading has become an industry leader in trading animal fat waste, used cooking oil (UCO), technical corn oil, and other vegetable oils throughout the lower 48 States, Canada, Mexico, and Europe. The company manages all aspects of transportation, logistics, trans-loading, and export services, providing on-time pick-up and delivery.
The completion of this transaction is an important step forward in delivering on Neste’s growth strategy in renewables and in strengthening our global renewable raw material platform, building on our acquisition of Mahoney Environmental in the US and IH Demeter, Bunge Loders Croklaan, and Count Terminal in the Netherlands, said Peter Vanacker, President, and CEO at Neste.
Neste’s raw material strategy is focusing on waste and residues growth and the development of new raw material sources. Agri Trading is an important partner for Neste as an industry leader in trading animal fat waste, used cooking oil, technical corn oil, and other vegetable oils in North America.
Additionally, Agri Trading’s established logistics networks and assets will enable Neste to source and transport raw material efficiently with a lower carbon footprint and, ultimately, enable Neste to maintain its leadership position in the global raw material market.