Wall Street-style strategic expansion moves are unfolding in West Africa’s oil palm sector as Nigerian agribusiness giant Presco Plc seeks to cement its dominance in the edible oils market.
In a fresh push to execute stalled growth plans, the board has called on shareholders to ratify the $124.9 million purchase of Ghana Oil Palm Development Company Limited (GOPDC) and approve the $46.7 million acquisition of Saro Oil Palm Limited (SOP) at its Annual General Meeting slated for August 19, 2025.
The notice to the Nigerian Exchange (NGX) highlights that while the GOPDC deal had already secured shareholder approval in 2024, litigation delayed completion, forcing a return to the AGM agenda. This time, the board aims to clear all hurdles in one swoop, combining the ratification of GOPDC with a fresh proposal for SOP.
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In its statement, the board urged investors to back the dual acquisitions, stating: “We respectfully invite shareholders to ratify the acquisition of GOPDC and to consider approval of the proposal to acquire SOP.”
GOPDC: A Strategic West African Foothold
Founded on December 6, 1995, Ghana Oil Palm Development Company Limited is a fully integrated agro-industrial player that handles every stage of the oil palm value chain — from cultivation to refining and distribution. Fully owned by Société d’Investissement pour l’Agriculture Tropicale (Siat SA), GOPDC operates two major estates — Kwae and Okumaning — in Ghana’s Eastern Region, covering about 21,000 hectares.
Out of this, 13,000 hectares are developed for roughly 6,000 outgrower farmers, supported by two mills, a refinery, and a pellet plant. Annual production exceeds 35,000 tonnes of palm and palm kernel oil, stored in facilities with a 21,000-tonne capacity. Peak harvest seasons see GOPDC employing around 30,000 workers, sustaining more than 50,000 people indirectly.
The acquisition is not just an expansion; it’s a deepening of existing ties. Siat SA, GOPDC’s owner, is already a major shareholder in Presco Plc, ensuring synergy in operations, supply chains, and market penetration.
Saro Oil Palm Limited
Saro Oil Palm Limited, also fully owned by Siat SA, represents a rapid growth story in Nigeria’s Edo State. Established in July 2019, SOP has quickly developed 22,500 hectares of plantation land, including a 10,000-hectare base project launched in 2020 and an additional 12,500 hectares acquired through Bansley International Ltd under the Edo State Oil Palm Programme.
By early 2025, SOP had planted 5,000 hectares, with plans to hit 8,000 hectares before year-end. Fresh Fruit Bunch cultivation is scheduled to begin in 2026, targeting 28,000 tonnes of output. Plans are also in place for two new palm oil mills — with 60-tonne/hour and 30-tonne/hour processing capacities.
For Presco, acquiring SOP offers a fast track to expansion — boosting total plantation size from 43,547 to 59,760 hectares in months rather than the typical 3–5 years required for greenfield development. This move not only secures high-quality farmland but also strengthens the company’s long-term production capacity, market share, and profitability outlook.
Sector Impact and Strategic Outlook
If approved, the twin acquisitions will give Presco one of the largest oil palm footprints in sub-Saharan Africa, advancing its goal of becoming the region’s most profitable and sustainable edible oil group. Industry analysts say this would place Presco in a stronger position to hedge against global palm oil price volatility and deepen its integration from farm to shelf.
With West Africa’s edible oils demand rising alongside population growth and industrial usage, Presco’s latest play could be a textbook example of scaling through strategic acquisitions — provided shareholders give the green light next week.