World Grain - May 2015 - 15

NEWSREVIEW

ADM expanding corn
business internationally
CHICAGO, ILLINOIS, U.S. - Archer Daniels Midland Company (ADM) announced
on April 21 that is purchasing several assets
of Eaststarch C.V., its joint venture with Tate
& Lyle.
Under the agreement, ADM will take full
ownership of corn wet mills in Bulgaria and
Turkey and will own a 50% stake in a wet
mill in Hungary. Tate & Lyle will receive a
cash consideration of €240 million, subject
to customary closing adjustments, including for net cash and working capital, and
take full ownership of the Eaststarch facility in Slovakia.
"Our Corn business is creating shareholder value through geographic expansion and
uct portfolio," said Chris Cuddy, president
of ADM's Corn Processing business unit.
"With the coming end of sugar production
real-based sweeteners will be lifted. There
will be tremendous opportunities in the new
European sweetener market, including a particularly strong opening in Eastern Europe,
where there is less sugar production. By acquiring a greater ownership share in these
corn assets, ADM will be able to better serve
our customers as they meet this expanding
European demand for sweeteners. At the
same time, we are improving our capabilities to meet customer needs in the growing
market for starch in Europe."
The Bulgaria, Turkey and Hungary facilities have a combined daily grind capacity of
approximately 200,000 bushels. They produce
primarily sweeteners and starches; the Hungary facility also produces ethanol for fuel,
beverage and industrial uses. This will increase
ADM's global grind capacity for corn 7.5%, to
approximately 3 million bushels per day.
anticipated decline in E.U. sugar prices,"
Cuddy said. "We expect this deal to meet our
returns objectives."
As part of the transaction, ADM will supply Tate & Lyle with crystalline fructose from
the Turkey facility. In addition, Tate & Lyle
will appoint ADM as the exclusive agent for
the sale of liquid sweeteners and industrial
starches produced by its E.U. plants.
Eaststarch, a 50-50 joint venture between
ADM and Tate & Lyle, was formed in 1992.
It owns three corn wet mills - one in Slovakia, one in Bulgaria and one in Turkey - and
50% of a mill in Hungary. The venture deals
primarily in corn sweeteners and starches.

For more information, see Page 114.

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For more information, see Page 114.

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