KUALA LUMPUR (Oct 19): Felda Global Ventures Holdings Bhd (FGV) has obtained the green light from the Canadian and United States authorities for the divestment of its non-core oilseeds crushing and refining plant in Quebac, Canada, to Viterra Inc, for RM608.2 million.

The world's largest producer of crude palm oil (CPO) told Bursa Malaysia today that the Competition Act (Canada) and the US' Hart-Scott-Rodino Antitrust Improvements Act approvals have been obtained for the disposal.

FGV had on Aug 23 announced it was disposing the oilseeds crushing and refining plant, Twin Rivers Technologies Entreprises De Transformation De Graines Oleagineuses Du Quebec Inc. (TRT-ETGO), in Quebec, Canada.

The CPO player said the divestment is in line with its transformation plan of revenue enhancement, cost-optimisation and operational excellence, in order to transform for the longer term benefit of its stakeholders and shareholders.

The exercise entails the disposal of 298,070 common shares, representing the entire issued share capital for CA$190 million (RM608.2 million) cash.

"Upon the completion of the proposed disposal, TRT-ETGO will cease to be a subsidiary of FGV," it added.

FGV's group president and CEO, Datuk Mohd Emir Mavani Abdullah, was earlier reported as saying the exercise will help to streamline its downstream focus, and hence, strengthen the group's competitive position.

Shares in FGV gained eight sen or 4.6% to close at its four-month high of RM1.82 today, for a market capitalisation of RM6.68 billion.

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