ADM may sell cocoa business in Ghana for $2b
US food-processing giant, Archer Daniels Midland Company (ADM), may sell its 30,000-tonne plant in Ghana.
The company is in talks to sell its cocoa business in the country.
“Consistent with our commitment to create shareholder value, we regularly evaluate strategic options and maintain on-going dialogue with other agribusiness companies to explore opportunities.
“We are currently engaged in discussions about the potential sale of our cocoa business. These discussions are on-going, and there can be no assurance that they will result in the signing of a transaction or definitive agreement. We will communicate further if appropriate,” said Jackie Anderson, spokesperson for ADM in a statement copied to this reporter.
Although the possible buyer is not known, industry sources say ADM is looking to sell the business for about $2 billion. The cocoa business accounts for 4 per cent of the ADM’s revenue, or $3.7 billion.
The company launched its Ghana plant in October in Kumasi, raising the world’s second largest cocoa grower grinding capacity by nearly 10 per cent to 350,000 tonnes.
The facility comprised a bean warehouse, a processing plant and a finished goods warehouse which sit on a 75,000 square-metre site. It processes cocoa beans into cocoa liquor for use in chocolate.
ADM is one of the world’s largest cocoa and chocolate manufactures, with cocoa-processing plants in Europe, Africa, North America, South America and Asia.
By Michael Sarpong Bruce
This is huge company and important strategic agrobusiness and Ghana need more of these companies to grow to add value to Agricultural produce for export instead of receiving peanut for raw material exports over many decades. Sooner these companies are value the better this country will be. Why are they selling if shareholders are not getting value for their money and the jobs as well as value added products these company produces.