Wilmar

Wilmar: likely to be in focus after it said it set up a 50/50 JV with Kellogg to make, sell and distribute cereal and snacks in China. Wilmar will contribute its China infrastructure, supply chain and distribution network, while Kellogg brings a portfolio of globally recognized brands and products. How important the deal will be to Wilmar is "anybody's guess," says OCBC, given no mention of numbers, or when it's going to start. But adds, that could provide some way for Wilmar to monetize their extensive distribution network, but the impact is still unknown. Notes the press release said the China snack food market will hit US$12b by end-year, but it doesn't look like Kellogg is in China in a big way yet. Adds, China would be a pretty competitive market. Wilmar ended Monday down 1.8% at $3.19; amid an expected market downdraft and concerns over CPO prices.