Sector News

ADM to buy rest of UK grain merchant Gleadell from InVivo

January 18, 2019
Food & Drink

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

October 17, 2021

France to ban plastic packaging for fruit and vegetables

Food & Drink

The government has published a list of around 30 fruits and vegetables that will be subject to the plastic packaging ban coming into effect on 1 January 2022. The list includes courgettes, aubergines and cucumbers, as well as apples, oranges and pears.

October 17, 2021

Kraft Heinz unveils plans for a circular PET ketchup bottle

Food & Drink

Kraft Heinz has detailed plans to release a circular PET tomato ketchup bottle by 2022 in its latest Environmental Social Governance report. The company has made progress towards its aim of using 100% recyclable, reusable or compostable packaging by 2025.

October 17, 2021

Beverages category fizzes with AI-generated soda, hemp-based gin, “green” cola & coca leaf infusions

Food & Drink

The drinks category is brimming with trend-driven launches including flavorful, energizing and better-for-you beverages. FoodIngredientsFirst speaks to disruptive fizzy beverage brands, whose offerings include a classic cola recipe reimagined with a clean label twist, as well as AI-generated flavor synergies.

Send this to a friend