Archer Daniels Midland Co. (ADM) has agreed to buy a majority
stake in Polish biodiesel maker Elstar Oils SA, (ELS.WA).
The Decatur, Ill., company did not disclose purchase terms for
Elstar, of northern Poland, which also manufactures refined
vegetable oils and fats for food companies.
"Poland is an important origination and consumer market for ADM.
Elstar's location in the heart of a rapeseed-growing region, with
easy access to the ports of Gdansk and Gdynia, complements our
existing presence in the region and will enable ADM to further
strengthen its position in Eastern Europe," said Brent Fenton,
president of ADM Europe. "The biodiesel plant will enable ADM to
develop the biodiesel market in Poland and fits well within the
company's integrated business model."
Elstar operates a rapeseed crushing, refining, solid-fat
packaging and oil bottling facility in Czernin, Poland, and a fully
automated biodiesel plant in Malbork, Poland.
The acquisition is subject to approval by antitrust
authorities.
-By Dee Patney, Dow Jones Newswires; 212-416-2079;
deepak.patney@dowjones.com