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Olam's US$1.3b deal for ADM's cocoa business hits delays
[CHICAGO] Olam International Ltd's US$1.3 billion deal to acquire Archer Daniels Midland Co's global cocoa business has been delayed for a second time, according to a US regulatory filing.
Chicago-based ADM, one of the world's top grain traders, expects the transaction to close in the fourth quarter this year, the company said in documents submitted to the US Securities and Exchange Commission this week.
The deal would be the biggest ever for the Singapore-based commodities firm and catapult the company into the top tier of global suppliers to the growing chocolate business.
When the deal was first announced in December, ADM and Olam predicted it would be completed in the second quarter.
Then, Olam said in May it expected the deal to close by the end of the third quarter.
The closing is "subject to completion of transitional activities," ADM spokeswoman Jackie Anderson said on Thursday. She declined to provide details.
ADM has received all regulatory approvals for the sale, Ms Anderson added.
Olam could not immediately be reached for comment.