- Archer Daniels Midland (NYSE:ADM) is reportedly close to selling its cocoa business to Cargill in a deal that could be worth up to $2B.
- The divestiture would further strengthen ADM's shift towards the grains industry as it completes its $3B acquisition of GrainCorp. The transaction would also reduce ADM's exposure to the lower profitability that's affecting the cocoa sector.
- The deal would create a global price-setting giant to rival Zurich-based Barry Callebaut (OTCPK:BYCBF), the world's biggest producer of industrial chocolate products. Cargill and Barry Callebaut would account for over 50% of world capacity.
- Food producers that could be affected include MDLZ, HSY, RMCF, KRFT, OTCPK:NSRGY.
- ETF: NIB
Archer Daniels Midland nears sale of cocoa operations
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Symbol | Last Price | % Chg |
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ADM | - | - |
Archer-Daniels-Midland Company |