US$67.71 Million, Hainan Rubber Acquired R1 International

- Oct 23, 2018-


On October 21, Hainan Natural Rubber Industry Group Co., Ltd. announced that it intends to pay a cash of 76.71 million US dollars (equivalent to about 530 million yuan) to purchase 71.58% of the natural rubber trader R1 International.

China Rubber Network learned that before the acquisition, Hainan Rubber Singapore, a wholly-owned subsidiary of Hainan Rubber, held a 15% stake in R1 International. After the transaction is completed, R1 International will become a subsidiary of Hainan Rubber Holdings. Holds 86.58% of the shares of R1 International.

R1 International is one of the international natural rubber traders. It has established procurement, production and sales channels in the rubber trading and processing business. In 2017, the natural rubber trade volume was more than 660,000 tons.

Hainan Rubber said in the announcement that through the acquisition of R1 International Holdings, Hainan Rubber has further expanded the global natural rubber trade, deepened the penetration of the natural rubber raw material market in Southeast Asia, improved the layout of the natural rubber industry chain in the middle and downstream, and strengthened The company's comprehensive strength in all aspects of natural rubber planting, processing, trade and other aspects of the industry chain, further enhance the industry's voice and industry status.

Through the acquisition of R1 International, Hainan Rubber can also solve the problem of competition in the industry. According to China Rubber Network, in April 2012, Hainan Rubber's wholly-owned subsidiary, Haijiao Singapore, and its controlling shareholder, Agricultural Reclamation Group, were wholly-owned by the Agricultural Reclamation Investment to acquire 15% and 60% of R1 International, respectively. R1 International became Hainan Rubber. A controlling subsidiary of the controlling shareholder. Since Haijiao Singapore and R1 International are mainly engaged in the natural rubber trading business, there is a problem of horizontal competition between Hainan Rubber and R1 International.