Archer-Daniels-Midland Co (NYSE: ADM) opened in the green this morning after announcing plans of buying FDL – a U.K. based producer of premium flavours.
Details of ADM-FDL agreement
Copy link to section
ADM refrained from divulging financial details of the agreement but Calvin McEvoy – its President of Global Flavours said in a press release today:
Our ongoing investments to add to our flavours portfolio are helping power our strategic work to build a global leader in Nutrition.
Archer-Daniels-Midland had close to $1.5 billion in cash and equivalents at the end of its third financial quarter in which its revenue sunk a worse-than-expected 12.1% to $21.69 billion.
Wall Street currently has a consensus “overweight” rating on shares of the food processing and commodities trading corporation.
Looking to invest?
Invest and trade CFD stocks, ETFs, digital assets & commodities in minutes with our highest-rated broker.
77% of retail CFD accounts lose money.
Ad
ADM also bought Revela this week
Copy link to section
Archer-Daniels-Midland expects FDL that operates three facilities in the United Kingdom to report $120 million in sales this year.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
The aforementioned transaction will likely complete in January so long that it meets the customary closing conditions. Note that ADM acquired Revela Foods – a dairy flavouring company from New Heritage Capital this week as well.
Analysts at BMO Capital Markets expect ADM to benefit from its efforts to expand its portfolio in 2024. But ethanol and soy crush margins will likely remain under pressure in the coming year, they added in a recent research note.
That’s why they downgraded shares of the Chicago-based multinational that pay a dividend yield of near 2.50% to “market perform” on Monday.
Ad
Copy expert traders easily with eToro. Invest in stocks like Tesla & Apple. Instantly trade ETFs like FTSE 100 & S&P 500. Sign-up in minutes.
10/10
77% of retail CFD accounts lose money.