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.