Archer Daniels Midland wades into ethanol crisis with bids for Brazilian, US (VeraSun) plants

In Illinois, Archer Daniels Midland has emerged as a bidder for five idled ethanol plants owned by VeraSun Energy. Valero put a $280 million stalking horse bid in several weeks ago, but as the actual auction gets underway, the process has not yet been completed after two days of bidding with both companies still in the bidding.

In other news, Brazil’s Valor Economic is reporting that ADM has inked a memorandum of understanding relating to the acquisition of three ethanol plants belonging to Unialco. The plants are in Sao Paulo state. ADM established a $500 million JV with Brazil’s Grupo Cabrera late last year to give it a position in the Brazilian ethanol trade. Consolidation continues to be a theme of both Brazilian and US ethanol M&A activity in recent weeks as the industry experiences a severe shakeout over high feedstock prices and the oil price plunge.

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