(BUSINESS WIRE) – Archer Daniels Midland Company (NYSE: ADM) announced today that it has reached an agreement to purchase Meiweiyuan Biotechnology Co., a privately held sweetener manufacturer near the city of Wuhan, in the central Chinese province of Hubei.
“This acquisition helps further expand our footprint in regions with growing demand for our products,” said Chris Cuddy, president of ADM’s Corn Processing business. “Last November, we were excited to begin production at our new sweetener facility in Tianjin, which is allowing us to serve major customers in the northern part of the country as well as Asian export markets. Now, we are expanding to better meet demand for starches and sweeteners from customers in central and western China. This is another example of how ADM is looking for—and seizing—great opportunities for profitable growth.”
The proposed acquisition is subject to regulatory approval. ADM hopes to complete the transaction in the coming weeks.
ADM also announced that it has signed a memorandum of understanding with the government of Hanchuan County, Hubei Province, in which the government commits to supporting ADM’s investment and its future expansion in the region.
“The Chinese government has called for increased investment in central and western China,” said Ismael Roig, ADM’s president, Asia-Pacific. “We see great opportunities in the region, and strongly believe that this acquisition will help to create value for customers, communities and our company. We expect this investment to meet our returns objectives.”