A merger between three giant plantation companies to create the world's largest listed palm oil firm is on track for completion at the end of this year, company officials said today.

Synergy Drive, the vehicle merging state-linked firms Sime Darby, Golden Hope Plantations and Kumpulan Guthrie in RM39 billion deal, said the new entity will be listed on Malaysia's bourse in the fourth quarter.

"Work on the merger is on track and work is progressing smoothly," Synergy Drive's chief executive Ahmad Zubir Murshid said in a statement.

Ahmad Zubir said the committee assigned to oversee the merger exercise had recently approved guidelines for the integration process.

The guidelines "will focus on developing plans to realise the full potential of the merger to facilitate a seamless transition," he said.

The three companies signed the merger agreement on Jan 24, seeking to consolidate a total of eight publicly listed companies.

Synergy Drive said the merged entity will be the third largest company on the bourse, with market capitalisation of about RM39 billion based on the current market price of all the firms.

The government's investment vehicle Permodalan Nasional will control the new firm.

It is expected to have total annual revenue of over RM26 billion, a workforce of more than 107,000 and combined plantation land of some 600,000 hectares in Malaysia and Indonesia.