By Jacob Bunge
Archer Daniels Midland Co. said it agreed to sell its global
cocoa business to rival commodity merchant Olam International Ltd.
for $1.3 billion.
The move follows ADM's deal to sell its chocolate-processing
business to agricultural conglomerate Cargill Inc. for $440
million, announced in September.
ADM buys grains, oilseeds and other commodities from farmers to
process into ingredients and to sell to food makers. The
Chicago-based company has been refocusing on higher-margin
businesses including flavorings and specialty ingredients. ADM
struck a deal in July to acquire Wild Flavors GmbH for $3 billion
in ADM's biggest-ever acquisition.
Patricia Woertz, ADM's chief executive, said the sale of the
cocoa business would help ADM "create shareholder value by
improving returns and dampening the volatility of our
earnings."
ADM expects the deal to close in the second quarter of 2015,
pending regulatory approvals.
Write to Jacob Bunge at jacob.bunge@wsj.com
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