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ADM to acquire 50% stake in Russian corn business

U.S. food processing company Archer Daniels Midland Co. said March 1 that it entered an agreement to acquire a 50% equity stake in the sweeteners and starches business of Russia-based food company Aston Foods and Food Ingredients.

Under the deal, ADM will own 50% of Aston's corn wet mills in Ibred and Novlyanka, which are located close to major customers in the Russian food and beverage industry, according to the release.

The investment is the latest in a series of initiatives made by the company to grow its global corn business. In 2015 and 2016, ADM acquired corn facilities in Hungary, Bulgaria, Turkey and Morocco, then launched an expansion effort to enhance its capabilities in those businesses.

Last year, the company completed its acquisition of wheat-based products maker Chamtor SA, which opened up access to key markets in western Europe.

"Taken together with this expansion into Russia, these global additions represent a substantial transformation for our corn business as we continue our geographical growth and diversification," Chris Cuddy, president of ADM's corn processing business, said in a statement.

The transaction is expected to close late in the second quarter of 2018, subject to regulatory approval.

Financial terms of the deal were not disclosed.