(Reuters) — Archer Daniels Midland has announced a deal to ac-quire full ownership of two Romanian export terminals on the Black Sea, bolstering its ability to export grain from Eastern Europe.
ADM said it has agreed to acquire North Star Shipping and Minmetal, a 50-50 joint venture with North Star, which have grain handling and storage assets at the Port of Constanta. ADM previously held about 45 percent of the companies.
The assets include 10 vessel berths, 330,000 tonnes of grain storage capacity, export terminals capable of loading six million tonnes annually and two floating cranes to transfer grain to ocean-going vessels from barges.
Read Also
Alberta farm lives up to corn capital reputation
Farm to Table Tour highlighting to consumers where their food comes from features Molnar Farms which grows a large variety of market fruits and vegetables including corn, with Taber being known as the Corn Capital of Canada.
In 2011, the company bought a network of grain elevators along the Danube River in Romania and now operates six tow boats and 50 barges on the waterway.
“By becoming full owners of these facilities on the Black Sea, we’re building on the investments we have made in our Danube River network since 2011, which enhances our origination, logistics and export capabilities in Eastern Europe,” said Joe Taets, president of ADM Europe Middle East and Africa.
The deal is the latest move by ADM to expand its global grain handling network as it works to-ward a goal of doubling the volume of grain it can originate over the next decade.
In February, ADM entered a 50-50 joint venture with commodities trader Glencore in a northern Brazilian port, aiming to quadruple the facility’s export capacity to take advantage of rising Brazilian crop production and growing global demand.
