Equities

Reuters reveals ADM to buy Neovia

Reuters reveals ADM to buy Neovia

Reuters exclusively revealed that Archer Daniels Midland Co. (ADM) is in exclusive talks to take over animal nutrition business Neovia for 1.5 billion euros ($1.75 billion), marking a new step in the U.S. agricultural giant’s strategy to expand in the fast growing feed sector. Neovia is majority owned by French cooperative group InVivo. Investment group Eurazeo also has a 17 percent stake in the company. ADM and its rivals such as Bunge, Cargill and Louis Dreyfus Company have been forced to review their approach in recent years as a global oversupply of food commodities has made it tough to turn a profit on their core business.