Archer Daniels Midland (ADM) announced it has agreed to acquire select assets including two oilseed processing plants from Brazil-based Algar Agro.
ADM stated that the decision to acquire the facilities located in Uberlândia in the state of Minas Gerais, and Porto Franco in Maranhão was made to strengthen the business’ capabilities in key Brazilian demand regions while also aligning with the company’s strategic growth plans. Under the terms of the deal, ADM also will gain control of an extensive network of origination and storage silos throughout northeastern and southeastern Brazil.
This bolt-on acquisition will add to ADM’s current oilseeds operations in Brazil which include soy processing plants in Rondonópolis, Campo Grande, Ipameri, Joaçaba and Uberlândia; a sunflower plant in Campo Novo dos Parecis; biodiesel refineries in Rondonópolis and Joaçaba; and a network of storage facilities with 2.2 million tons of capacity.
Having recently forged an oilseed joint venture with Cargill in Egypt, and completing several acquisitions across North America and Europe, the deal with Algar Agro will expand ADM’s oilseed presence in South America at a time when global demand for meal shows signs of continued growth.
Lynda Kiernan is Editor with HighQuest Group Media and of the Oilseed & Grain News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at email@example.com.