Top Stories
Top Stories
Wires

UPDATE 1-ADM to combine grain trading and oilseed business

(Adds details, background, quote)

CHICAGO, May 29 (Reuters) - Global grains trader Archer Daniels Midland Co said on Wednesday it will consolidate five business units into four by combining its grain trading and oilseeds segments into a new business unit called Ag Services & Oilseeds, effective July 1.

The new unit will be led by Greg Morris, former president of ADM's oilseeds unit.

The move comes during a particularly challenging period for grain merchants such as ADM and rivals Bunge Ltd, Cargill Inc and Louis Dreyfus Co, known as the ABCD quartet that dominates global agricultural commodities trade. The companies' profits have been squeezed by a global grains glut, low crop prices and a bruising U.S.-China trade war that has stifled global commodities flows.

ADM said in April that it is seeking voluntary early retirements by some North American employees and may eliminate individual jobs as part of a restructuring of specific areas.

The company said the new Ag Services & Oilseeds division, which will combine ADM's global trading, transportation and oilseeds-processing businesses, is "a natural evolution."

"This helps us better integrate the supply and value chains to deliver significant simplification and efficiency to the day-to-day business," CEO Juan Luciano said in a statement.

ADM shares were down slightly in midday trading at $38.51 a share, a three-year low. (Reporting by Karl Plume in Chicago and Arundhati Sarkar in Bengaluru; Editing by Sriraj Kalluvila and Dan Grebler)

Related Tags