Archer Daniels Midland to buy controlling stake in smaller Israeli rival Industries Centers

Archer Daniels Midland (ADM), one of the world's largest grain traders, yesterday agreed to buy a controlling stake in its smaller Israeli rival Industries Centers, for an undisclosed amount.

''With this investment, we are continuing to expand and enhance our core value chain, including our ability to deliver direct to the customer,'' said Joe Taets, president of ADM's Agricultural Services business unit.

''Industries Centers offers an entry point into a strong, established Israeli market. We have worked with them in the past to help us import our own products into Israel, and we know them as an experienced, capable partner,'' he added.

Founded in 1993, privately-owned Industries Centers trades in corn byproducts and specialises in the import and distribution of agricultural feed products.

It has offices in the Tel Aviv area, and operates a 45,000 MT storage facility strategically located at the Port of Ashdod.

Industries Centers has a significant and diversified customer base within Israel, according to ADM.

Chicago-based ADM plans to close the deal in the coming months, pending Israeli regulatory approval.