Seoul: POSCO International Corp., the trading arm of POSCO Group, announced on Thursday its acquisition of Indonesian palm oil producer Sampoerna Agro in a transaction valued at approximately 1.3 trillion won (US$884.7 million). This strategic move aims to enhance its global biofuel business.

According to Yonhap News Agency, POSCO International completed the acquisition to secure a controlling stake in Sampoerna Agro, making it the largest shareholder in the Jakarta-listed company. The South Korean corporation sees this acquisition as a pivotal step in fortifying its global palm oil value chain.

Sampoerna Agro operates extensive palm oil plantations on the Sumatra and Kalimantan islands in Indonesia. The company also owns a major seed production subsidiary and an agricultural research institute. With this acquisition, POSCO International adds 128,000 hectares of palm plantations to its Indonesian agro portfolio, bringing its total control to 150,000 hectares in the region.

POSCO International ventured into the palm oil industry in 2011 and currently operates three palm oil plants in Indonesia's Papua province, with a combined production capacity of 210,000 tons of palm oil annually.