Archer Daniels, a company engaged in the processing of oilseeds, corn, wheat, cocoa, and other agricultural products, outbid its Japanese competitor Ajinomoto Co. (AJINY) for Wild Flavors, a manufacturer of flavors, colors, and health-conscious food and beverage ingredients.
The deal is not yet public but an announcement regarding the merger could be made in the next few days, sources told Bloomberg.
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The merger would help Archer Daniels meet the growing consumer demand for the use of natural materials in concentrates, colorings, and confectionary ingredients.
Shares of Archer Daniels Midland are up by 0.97% to $45.76 in late-morning trading on Thursday.
Separately, TheStreet Ratings team rates ARCHER-DANIELS-MIDLAND CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ARCHER-DANIELS-MIDLAND CO (ADM) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."