French grain merchant Malteries Soufflet has agreed to buy Australian distributor United Malt Group for about A$1.5bn ($999.3m) in cash. The deal values each share at A$5, a significant premium of 45.3%. This strategic move will allow Malteries Soufflet to expand its geographic presence and enter new markets, including China and Oceania.

With processing plants in Australia, Canada, the United States and the United Kingdom, United Malt is the fourth largest commercial maltster in the world. Its core business revolves around the large-scale production of malt for a variety of industries, including breweries, craft breweries, distilleries and food companies.

Malteries Soufflet, a subsidiary of the esteemed InVivo Group, is a major player in the global malting industry and holds an 11% share of the global market. It has an extensive presence in Europe, Latin America, Asia and Africa, operates 29 maltings and employs approximately 1,400 people. Earlier this year, it strategically acquired Belgium-based Castle Malting to strengthen its position in the lucrative craft beer market and create a robust platform to supply industrial breweries and distilleries globally.

The InVivo Group generates revenues of nearly €12 billion, more than half of which come from France. The Group has 15,000 employees, operates in 38 countries and has more than 90 industrial sites.