Archer Daniels Midland in talks to sell $2-bn cocoa business
21 Jun 2013
Archer Daniels Midland Co (ADM) yesterday said that it is in talks to sell its cocoa business, as the US agribusiness giant now focuses on expanding its grains business.
The move comes two months after it agreed to pay $3.1 billion to acquire GrainCorp Ltd, Australia's largest independent grains handler. (See: GrainCorp finally submits to ADM's $3.1-bn bid).
''Consistent with our commitment to create shareholder value, we regularly evaluate strategic options and maintain ongoing dialogue with other agribusiness companies to explore opportunities,'' ADM's spokesperson Jackie Anderson said in a statement.
''We are currently engaged in discussions about the potential sale of our cocoa business. These discussions are ongoing, and there can be no assurance that they will result in the signing of a transaction or definitive agreement. We will communicate further if appropriate,'' she added.
A sale of ADM's cocoa division, one of the world's largest and estimated to be worth $2 billion, according to a Reuters report.
Illinois-based ADM is one of the world's largest processers and suppliers of cocoa and chocolate products and its customer base ranges from industrial manufacturers and global retailers to individual artisans and chefs.
ADM cocoa product line is marketed around the world under five brands, and has manufacturing facilities located in North and South America, Europe, Africa and Asia.
Founded in 1902 by George Archer and John Daniels, ADM is one of the world's largest agricultural processors with more than 270 processing plants, 420 crop procurement facilities and a large crop transportation network.
It main competitors are Cargill, Bunge and Louis Dreyfus and has annual sales of $89 billion.