Malaysian palm plantation firm Felda Global Ventures Holdings Bhd (FGV) is putting a hold on acquisitions after a three-year, US$2.5 billion (RM9.4 billion) spree designed to boost output and will now focus on consolidating investments.

The new strategy, disclosed in a statement today, comes after the world’s third-largest palm plantation operator said last month it planned to buy 37 percent of Indonesia’s PT Eagle High Plantations for US$680 million.

That deal was slated as being too expensive by analysts and politically motivated by opposition lawmakers, and FGV shares fell as much as 11 percent to all-time lows.

Felda defended the transaction today, describing the deal as “a game-changer for the palm oil industry”.

The company said it was not seeking majority control in Eagle High, and that the deal was conditional upon the transaction not requiring Felda to make a mandatory offer for the whole company.

The stock was 0.61 percent higher at RM1.64 at 0118GMT, while the Malaysian benchmark index was up 0.01 percent.

- Reuters