Sector News

ADM to buy rest of UK grain merchant Gleadell from InVivo

January 18, 2019
Consumer Packaged Goods

U.S. agribusiness group Archer Daniels Midland Co said on Thursday it had agreed to buy the remaining 50 percent stake in British grain merchant Gleadell it does not already own from French co-operative InVivo.

Gleadell, based in Gainsborough in eastern England, is one of Britain’s largest traders of grains, oilseeds and pulses. Competitors include Cargill and Associated British Foods joint venture Frontier Agriculture and co-operative Openfield.

The deal, which includes Gleadell’s wholly-owned subsidiary Dunns (Long Sutton) Ltd, is expected to close in the first quarter, ADM said in a statement.

Terms of the deal were not disclosed.

The U.S. group plans to merge Gleadell and Dunns with its British units ADM Arkady and ADM Direct UK to create ADM Agriculture Ltd, it added.

“The transaction will increase ADM’s origination, storage and destination marketing capabilities in the UK,” the statement said, noting Gleadell was a major exporter to European Union markets and further afield.

Key assets include port storage and ship loading operations along with extensive pulse and agricultural seed processing.

“ADM and InVivo are convinced that Gleadell should develop a robust project firmly based on its domestic market. The strategy of InVivo, meanwhile, is more based on sourcing from French cooperatives for exporting outside the EU,” Stephane Bernhard, InVivo’s head of trading, said in an emailed statement.

ADM’s CEO said in an interview with Reuters published on Wednesday that it had looked at buying rivals including Bunge Ltd. but decided the time was not right for “monster” acquisitions.

By Nigel Hunt, Valerie Parent and Gus Trompiz

Source: Reuters

comments closed

Related News

April 14, 2024

McCain Foods completes acquisition of Strong Roots

Consumer Packaged Goods

McCain Foods has completed the acquisition of Irish plant-based frozen food manufacturer Strong Roots. The acquisition follows McCain and Strong Roots’ strategic partnership, which began in 2021 and resulted from a $55 million investment.

April 14, 2024

Cargill’s alternative cocoa collaboration gets off the ground as cocoa prices continue to climb

Consumer Packaged Goods

Cargill partners with Voyage Foods to scale up alternatives to cocoa-based products to meet consumers’ indulgence needs. The commercial partnership will also provide food manufacturers with nut spreads produced with no nut or dairy allergens used in the recipe formulation.

April 14, 2024

L’Occitane stock still halted as owner reportedly tries again to privatize beauty company

Consumer Packaged Goods

L’Occitane International owner Reinold Geiger is reportedly close to taking the company private in a deal with Blackstone. The French skin care company’s filing halted trading of its Hong Kong-listed shares this week. This is the second time in months that the Australian billionaire has attempted a buyout.

How can we help you?

We're easy to reach