UPDATE 1-Olam completes acquisition of ADM's cocoa business
* Olam becomes top tier supplier to chocolate industry
* Brazil cocoa assets seen among key acquisitions (Adds quotes, background)
By Sarah McFarlane and Nigel Hunt
LONDON, Oct 16 (Reuters) - Olam International has completed the acquisition of the global cocoa business of Archer Daniels Midland Co. in a deal valued at $1.2 billion, the companies said on Friday.
The deal, first announced in December last year, catapults the Singapore-based commodities firm into the top tier of global suppliers to the chocolate business.
It boosts Olam's processing capacity to about 700,000 tonnes, behind only Barry Callebaut and Cargill Inc. with operations in major producing countries Ivory Coast, Nigeria, Ghana and Brazil as well as coming markets in Europe, the United States, Canada and Asia.
The combined entity will be looking to source from around 850,000 tonnes to 900,000 tonnes annually, Gerry Manley, Olam's head of cocoa said.
"We want to be really focused on the cocoa products market and supplying the chocolate industry, cocoa powder users, and really not set ourselves up in competition to chocolate manufacturers," Manley said.
"Most importantly of all for us from a producing country point of view and indeed a consuming country point of view, we get Brazil. It's the largest producing country where Olam has not been involved before." Continued...