ADM may exit ethanol business: in talks with up to 5 contenders for sale, JV

January 9, 2020 |

In Illinois, Bloomberg is reporting that agrigiant Archer-Daniels-Midland, is underway on talks that would result in the divestiture of its ethanol production plants. Bloomberg disclosed that as many as five companies are discussing a potential joint venture or outright acquisition of ADM’s entire fleet of ethanol dry mills, which most recently topped 1 billion gallons in ethanol production capacity. The sector has come under intense pressure following moves by the Trump Administration to sharply reduce renewable fuels distribution in the United States and as a US trade war with China takes a toll on a multi-billion dollar exports of US ethanol to China.

“We are advancing things with several different parties,” CEO Juan Luciano told Bloomberg, “and I can disclose right now that we are advanced in those discussions. We want to find either the right buyer or the right partner for these things, and at this point in time, we haven’t made that decision, but we are close.”

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Category: Producer News

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