ADM and Metabolix get divorced; chilling effect on biofuels IPOs?

January 18, 2012 |

In Massachusetts, ADM has given notice of termination of the Telles joint venture for PHA bioplastics, effective February 8, 2012.  Telles was established as a joint venture between Metabolix and ADM in July 2006. Telles sells PHA-based bioplastics, including Mirel and Mvera, in the US, Europe and other countries.

All Metabolix technology that was used in the joint venture, including intellectual property rights, will revert solely to Metabolix. In addition, Metabolix will have no ongoing obligation under the ledger account which was funded by ADM to finance the Clinton plant and certain Telles operating costs.

There’s already speculation that the ADM-Metabolix announcement will have a chilling effect on the IPO market for biofuels, where there are 10 ventures in the queue right now. “ADM has now given investors another reason to be wary of Wall Street’s efforts to take these companies public,” says The Street. Meanwhile, shares in Metabolix (MBLX) fell 55 percent on the news last Friday.

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