Archer Daniels Midland Co. (ADM) said Wednesday it has signed a series of definitive agreements with Singapore-based Wilmar International Ltd. (WLMIY) to cement the expansion of the companies' partnership.
ADM Chief Operating Officer Juan Luciano said the company signed three separate definitive agreements in March which allow it to move forward with recently agreed ventures, and both companies are now preparing for their implementation.
However, the developments are still subject to merger clearance, according to a slide shown at the investor presentation in Hamburg, Germany.
Last month ADM, which owns a 16% stake in Wilmar, said the companies would extend their partnership to fertilizer, ocean freight and tropical oil refining in Europe. The two companies, which trade and process grains and oilseeds, signed a memorandum of understanding and said they would look to finalize the definitive agreements over the next few months.
ADM's partnership with Wilmar has given it access to the market in China, where the two companies built a network of soybean-crushing plants. ADM, based in Decatur, Ill., said the companies' relationship started in the mid-1990s.
The companies will now collaborate globally on fertilizer purchasing and distribution, and they will work to improve ocean freight fleet management, with both companies contributing two ships to the effort.
In tropical oils, the companies will work together to better use plant capacity in Europe, ADM said.
-By Michael Haddon, Dow Jones Newswires; 4420-7842-9289; [email protected]