Bloomberg the Company & Products

Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

ADM in Talks on Sale of Cocoa Unit After Margins Squeezed

(Corrects sales in fourth paragraph of story originally published June 21.)

June 21 (Bloomberg) -- Archer-Daniels-Midland Co., the world’s largest corn processor, is in talks to sell its cocoa unit, which swung to an operating loss in the first quarter amid a squeeze on processing margins.

“We regularly evaluate strategic options and maintain ongoing dialogue with other agribusiness companies to explore opportunities,” Jackie Anderson, an ADM spokeswoman, said yesterday in a statement. “These discussions are ongoing, and there can be no assurance that they will result in the signing of a transaction or definitive agreement.”

The cocoa unit posted a $22 million operating loss in the first quarter, compared with profit of $159 million a year earlier. Processing margins were lower because of an increase in the industry’s grinding capacity, lower cocoa-powder prices and customers using up inventories, the Decatur, Illinois-based company said May 1.

ADM’s cocoa business is part of its oilseeds-processing division and accounted for $833 million of sales, or 3.8 percent of the company’s total first-quarter revenue, according to data compiled by Bloomberg.

ADM paid $470 million for W.R. Grace & Co.’s cocoa business in 1996, its largest acquisition prior to the A$2.2 billion ($2 billion) takeover bid for of Australia’s GrainCorp Ltd. announced in October.

To contact the reporter on this story: Simon Casey in New York at

To contact the editor responsible for this story: Simon Casey at

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.