US-based agri-processing company Archer Daniels Midland (ADM) is in negotiations to sell its cocoa business which is estimated to be worth $2bn, as part of its efforts to focus on its grains portfolio such as corn, and oilseeds, including soyabeans.
ADM has approached potential buyers over the sale of the cocoa division, reported Financial Times citing sources familiar with the matter.
ADM spokesperson Jackie Anderson said that the company is currently engaged in discussions over the potential sale of its cocoa business.
"These discussions are ongoing, and there can be no assurance that they will result in the signing of a transaction or definitive agreement. We will communicate further if appropriate," Anderson added.
ADM's cocoa unit generates annual revenues of $3.5bn. If completed, the deal would be the second largest deal in the past six months.
The company's cocoa and other processing divisions reported net sales of $3.7bn in 2012, which represents 4% of the total revenues.
The proceeds from a sale could be used for the purchase of Australian grain handler GrainCorp. ADM is awaiting approval from the Chinese regulators for its $3bn GrainCorp takeover.
