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United States : ADM reverts on plans to sell joint cocoa and chocolate business

September 4, 2014

Reverting on plans to divest its joint cocoa and chocolate arm, ADM Cocoa, in 2013, ADM has announced it would only sell its chocolate making business instead.

The recently announced deal will see Cargill acquiring ADM's three North American chocolate plants, sited in Milwaukee, Hazleton and Georgetown and three in Europe: Liverpool, UK, Manage, Belgium and Mannheim, Germany

ADM's chocolate business was part of a division that was pressured by growing cocoa prices in 2013 and suffered a $33m operating loss in financial year 2013.

President of Cargill Cocoa and Chocolate North America, Bryan Wurscher, said : "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."

ADM chairman and CEO Patricia A. Woertz, added : "The sale of the chocolate business helps improve ADM's returns and will allow us to redeploy capital for higher-return investments."

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Source: TendersInfo (India)

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