Singapore-based Wilmar International on Thursday announced a US$4.3bn merger plan that would create Asia’s largest agribusiness group and give Archer Daniels Midland an enhanced role in the fast-growing global palm-oil business.

The proposed deal is part of a land grab for palm-oil assets in Malaysia and Indonesia, the largest producers of a commodity where demand has soared from its use in producing biodiesel and use as a foodstuff, particularly in China and India.