CHICAGO Archer Daniels Midland Co (ADM.N), one of the world's largest agricultural merchants, said on Monday it agreed to buy a controlling stake in an Israeli grain trader, as it seeks to expand markets to boost profits that have been hampered by a global oversupply.
Chicago-based ADM plans to close the deal for privately held Industries Centers in the coming months, pending Israeli regulatory approval, according to a statement. The purchase will allow ADM to reach new customers and deliver products more directly to customers, it said in a statement. Terms were not disclosed.
ADM and other major traders that move corn, soybeans and other crops from regions of surplus to areas of tight supply have struggled to profit from their core grain trading businesses lately.
With grain busting out of storage bins all around the world the big grain merchants have fewer opportunities to capitalize on "dislocation" of supplies, companies say.
Industries Centers, founded in 1993, trades corn byproducts and other grain products, according to ADM.
(Reporting by Tom Polansek; Editing by Jeffrey Benkoe)