ADM Acquires Stake in Russian Corn Wet Mill Business

American agribusiness Archer Daniels Midland (ADM) recently entered into an agreement to purchase a 50% stake in the sweeteners and starches business of Russian firm Aston Foods and Food Ingredients, a press release announced Thursday.

“ADM has substantially added to our global sweeteners and starches capabilities with acquisitions serving the European Union, Middle East, and North Africa markets, and now we are expanding to serve the growing Russian food and beverage industry,” Pierre Duprat, president of ADM Europe, Middle East, and Africa said in a statement. “Aston is a key player in this important market, and we look forward to joining them and bringing our experience and capabilities to help our new jointly-owned business grow.”

The deal gives ADM 50% ownership of two corn wet mills in Russia, which the firm said are located near major domestic food and beverage producers. Company officials said the purchase of the stake in Aston is part of ADM’s broader effort to grow its corn business across the globe.

“Last year, we completed our acquisition of Chamtor, opening up access to key markets in Western Europe. In 2015 and 2016, we acquired corn facilities in Hungary, Bulgaria, Turkey, and Monaco, then launched a significant expansion effort to enhance our capabilities in those businesses,” said Chris Cuddy, president of ADM’s corn processing unit, in the release.

ADM also has expanded its corn business in Asia in recent years, operating several animal feed plants in the region and a sweetener facility in Tianjin.

“Taken together with this expansion into Russia, these global additions represent a substantial transformation for our Corn business as we continue our geographical growth and diversification,” said Cuddy.

The transaction is expected to close in the second quarter of 2018 following regulatory approvals.

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