On Monday, Olam International, a Singapore-based agriculture product and food ingredient Company, sealed the deal for New Zealand Farming System Uruguay (NZS). Despite, the heavy losses of NZS during the last couple of fiscal quarters, Olam announced that it can turn the falling Company into a lucrative option.

Olam already owns 18.45% of the NZS shares, which was not proven successful, as NZS is planned to reach 50.1% within 2 years subsequent the approval of the overseas investment office on the purchase, resulting in Olam taking full acquisition of NZS. Olam reported that the Company is pleased to list NZS as an entity.

The purchase of NZS shareholdings will result in Olam’s further deal with PGG Wrightson, which owns 11.5% of NZS shares. 

Trying to keep Olam’s investors calm, Vivek Verma, Managing Director Coffee and Dairy Divisions at Olam, "We are confident, we do believe that this will be a turning point for the company and we would encourage shareholders to let off part of their shareholding and make this offer successful".

NZS has been working on developing the dairy farms in Uruguay, when its share market value declined bellow the expectations, of both the experts and the Company’s executives. Rumors surfaced around NZS disastrous deal with a land bank in Uruguay being the reason behind the rapid drop.