ADM Closer To Control Of Brazil Coop Cooagri -Report
February 17 2009 - 3:26AM
Dow Jones News
U.S. grain giant Archer Daniels Midland Co. (ADM) has moved
closer to gaining control of a Brazilian agricultural cooperative
Cooagri, reported local financial newspaper Valor Economico
Monday.
The controlling associates of Cooagri on Friday agreed to allow
ADM to lease Cooagri's 18 units in Mato Grosso do Sul state for
five years, with an option to purchase the cooperative in two
years, the newspaper reported. The cooperative's members still need
to approve the deal.
ADM sees the potential to hike Cooagri's corn and soy storage
capacity by 50% from its current one million tons, a person close
to the deal recently told Dow Jones Newswires.
ADM should pump 10 million Brazilian real ($4.4 million) into
cash-strapped Cooagri, the newspaper reported. ADM wasn't available
for further comment.
Brazil is the world's No. 2 soy producer after the U.S.
-By Tony Danby, Dow Jones Newswires; 55-11-2847-4523;
brazil@dowjones.com