Blog: Cargill snaps up ADM's chocolate business
Dean Best | 2 September 2014
Five months after Cargill's rumoured interest to buy Archer Daniels Midland's cocoa and chocolate businesses came to nothing, the company today (2 September) announced a deal for part of the assets.
Cargill has agreed to pay US$440m for ADM's chocolate divisions, which includes two plants in the US and one each in Canada, the UK, Belgium and Germany.
"This acquisition is a major milestone in Cargill's chocolate growth strategy and will help us better serve our customers in North America and Europe," Bryan Wurscher, president of Cargill's cocoa and chocolate business in North America, said.
Cargill argued the deal will broaden the product range it offers to food manufacturers.
For its part, ADM said the sale would allow it to focus on "higher-return investments".
The deal follows ADM's announcement in April that it would keep the "majority" of its cocoa operations after "extensive negotiations" with an unnamed buyer over a deal for its cocoa and chocolate operations. The talks, believed to be with Cargill, fizzled out - but ADM said it was still looking to offload its chocolate business, the smaller of the two divisions.
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Cargill's move to buy Archer Daniels Midland's chocolate business has cleared its last regulatory hurdle after clearance from the European Commission. But Brussels has asked Cargill to offload part of...
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