ADM To Sell Chocolate Biz, To Keep Cocoa Press Ops - Update

(RTTNews) - Grain processor Archer-Daniels-Midland (ADM), Tuesday said it will now try to sell off its chocolate business, after attempts to sell its global cocoa and chocolate business did not pay off. The company also agreed to sell its fertilizer business in Brazil and Paraguay to Mosaic Co. (MOS) for $350 million.

Decatur, Illinois-based ADM said that it will now focus on selling of its chocolate business, while retaining the majority of its cocoa press operations.

Chief Executive Patricia Woertz said, "We had extensive negotiations with a potential buyer regarding the sale of our global cocoa and chocolate business. In the end, we could not agree to an outcome that met ADM's objectives. Instead, ADM is moving ahead with a process to sell our global chocolate business while retaining most of our cocoa press operations."

ADM has chocolate manufacturing operations in the US, the UK, Belgium, and Germany.

Regarding the fertilizer business deal, ADM said it will purchase fertilizer from Mosaic and will continue to supply certain fertilizer customers in Brazil and Paraguay.

ADM also said it will acquire the remaining 20 percent stake of Alfred C. Toepfer International for 83 million euros. Since 2002, ADM has owned 80 percent of Toepfer, while Union InVivo held the remaining 20 percent since 2010.

Commenting on the three transactions, Woertz said, "We are committed to ongoing portfolio management to realize value from our businesses and to deploy our capital where it can best improve returns. The actions we are announcing today are results of this continuing process. Each of these transactions will help ADM continue to improve returns and create shareholder value."

ADM closed Tuesday's trading at $44.27, down $0.42 or 0.94%, on the NYSE. The stock further dropped $0.11 or 0.25% in after-hours trade.