Archer Daniels Midland May Sell Cocoa Business (ADM)
Agricultural company, Archer Daniels Midland Company (ADM) reported on Thursday that it is now in the process of potentially selling its cocoa business.
The company is now in talks for the possible sale of the business, which would allow it to focus on its grain business. ADM first reached out to potential buyers 18 months ago, but has been in talks about the sale more recently.
The cocoa business accounts for 4% of the company’s revenue, or $3.7 billion. Although the possible buyer is not known ADM will is looking to sell the business for about $2 billion.
Jackie Anderson, a spokesperson for ADM noted, “consistent with our commitment to create shareholder value, we regularly evaluate strategic options and maintain ongoing dialogue with other agribusiness companies to explore opportunities. We are currently engaged in discussions about the potential sale of our cocoa business.”
Archer Daniels Midland shares were up 73 cents, or 2.24% during premarket trading Friday. The stock is up 19% YTD.
The Bottom Line
Shares of Archer Daniels Midland Company (ADM) have a 2.33% yield, based on Thursday’s closing price of $32.61.
Archer Daniels Midland Company (ADM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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