Guan Chong Berhad Acquires 25% of Transcao Côte d’Ivoire for $28.9m.

Guan Chong Berhad (GCB), a Malaysia-based cocoa manufacturer and the fourth-largest cocoa grinder globally, is poised to acquire a 25% stake in Transcao Côte d’Ivoire (Transcao CI), a Côte d'Ivoire -based cocoa manufacturer, for a sum of US$28.9 million.

Why does this matter: Côte d'Ivoire produces approximately 40% of the world’s cocoa. However, a substantial portion of its output is exported to international markets, resulting in a loss of vital foreign exchange that could be derived from the value-added processing of cocoa beans into consumable goods. Notably, cocoa prices surged to record highs of $12,565 in 2024.

• Recently, GCB inaugurated Africa’s first cocoa bean grinding facility, which possesses a capacity of 60,000 tonnes. This plant aims to streamline the beans-to-ingredients cycle and mitigate supply chain risks, ensuring timely production and delivery to critical European markets.
• Transcao is primarily owned by the state-backed Conseil du Café-Cacao (CCC), the regulatory authority for cocoa and coffee in Côte d'Ivoire.

GCB produces cocoa mass, cocoa butter, cocoa powder, and industrial chocolate, with an annual grinding capacity of 330,000 tonnes of cocoa beans and operational footprints across four continents. The company has committed to hiring local personnel for essential commercial and technical roles in the acquisition deal.

The bottom line: GCB’s acquisition of a 25% stake in Transcao presents mutually beneficial opportunities for all parties. Côte d'Ivoire must advance beyond the exportation of unprocessed cocoa beans, which yields diminished foreign exchange and positions the country at the lower end of the value chain. By leveraging GCB’s technical expertise alongside Transcao's processing capabilities, there is a substantial opportunity to develop value-added cocoa products, resulting in revenue-generating advantages for the respective companies and the economy.