Olam International has added extra shares in sweeteners group PureCircle to its extensive shopping spree, a month after taking a small writedown on its existing holding.

The broad-based commodities supplier said it had bought oilseeds giant Wilmar International out of a joint venture which had a 17.3% stake in PureCircle, which champions a zero-calorie sugar substitute refined from the stevia plant.

The £33.2m deal - struck at 250p a share, a 6.6% premium to the closing price of PureCircle shares on Thursday – leaves Olam clear as the London-listed group's biggest shareholder, with a 20% stake.

The acquisition in the latest in a string of purchases by Olam, which has since July bought tomato processing facilities in California, a stake in dairy group New Zealand Farming Systems Uruguay, and added to its Australian almond grove empire.

'Significant shareholder value'

Olam said that its believed its stake increase would "lead to accretion of significant shareholder value in the long term", citing US regulatory approval for PureCircle's core Reb A sweetener and the growing popularity of healthier products.

"With continuing pressure for the reduction of calories in food and beverages, PureCircle's discussions with both current and potential clients have led to the expectation that such clients are planning launches of stevia-sweetened products," Olam said.

"PureCircle will benefit directly from these expected product launches."

There was also potential for developing Reb A in countries where PureCircle has yet to establish a foothold.

Acquisition risks? 

Wilmar, which bought its shares at £2.01 in July last year, said that it had found its PureCircle investment did "not have much synergy" with its own business.

Olam in last month's first quarter results took a Sing$1.7m writedown on its PureCircle stake, according to Deutsche Bank analysts, who have cautioned investors over the Singapore group's string of acquisitions.

"As Olam drums up support for its global merger and acquisition plans, we believe it is prudent to consider the risks as the number of moving parts within the group rises which may lead to unexpected events," Deutsche Bank said.

Market reaction 

PureCircle managing director Magomet Malsagov "welcomed" the extra investment by Olam, whose chief executive, Sunny George Verghese, sits on the group's board.

"Since their first investment with us in July 2008, Olam have proved to be a strong supportive partner who we value highly," Mr Malsagov said.

PureCircle shares ended up 2p at 236.5p.

Olam shares closed down 0.8% at Sing$2.58 in Singapore, with Wilmar closing up 0.5% at Sing$6.45.