Trade Resources Company News Cargill Sells Flour Unit in Argentina to Molinos Canuelas

Cargill Sells Flour Unit in Argentina to Molinos Canuelas

US agricultural commodities trader Cargill has sold its wheat flour division in Argentina to Molino Canuelas Sacifia for undisclosed sum.

Following the acquisition, Canuelas is expected to control 24% share in the flour in the country.

The acquisition, which is subject to regulatory approval, includes the mills operated by Cargill.

Canuelas president Aldo Navilli was quoted by LA Capital as saying: "This acquisition allows us to continue with the strategic mission of growth and expansion to open ourselves to new regional markets."

Cargill's Argentine flour unit consists of seven milling plants. It has an annual soyabean processing capacity of 9 million tons in Argentina, remaining as the second largest player in the market after Bunge.

The sale was part of Cargill's reorganizing and restructuring efforts initiated by its CEO David MacLennan over the past year.

In May, Bloomberg reported that Cargill had reached an agreement with Canuelas regarding the sale of its flour business in Argentina. Canuelas had to complete the deal within 60 days.

Cargill's rival Bunge had also made an unsuccessful bid for the unit, the publication said quoting people familiar with the matter.

Earlier this month, Cargill said that it had entered into an agreement to acquire Five Star Custom Foods.

Five Star Custom Foods is a Texas-based food company specializing in cooked protein products and custom prepared soups and sauces for the foodservice and food processing sectors.

The latest acquisition is the second by Cargill in Fort Worth. In 2012, Cargill purchased a beef grind facility in the area.

In May, Cargill decided to keep its protein business headquarters in Wichita after a thorough analysis of numerous options, including several cities in states other than Kansas.

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