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Ethanol Pioneer ADM Mulls Spinoff of Besieged Biofuel Business

April 26, 2019, 2:11 PM

Archer-Daniels-Midland Co. is considering spinning off its ethanol business as glutted biofuel markets force a re-think even for one of the industry’s pioneers.

ADM reported weaker-than-expected quarterly earnings on April 26, with narrower biofuel margins behind some of that disappointment. Long one of the top producers of corn-based ethanol, ADM announced it will create a subsidiary for its ethanol plants, allowing it to “advance strategic alternatives” including a potential spinoff to existing shareholders.

The Chicago-based agribusiness giant helped develop the modern U.S. ethanol industry. A form of alcohol, ethanol got a foothold in America’s fuel supply during Jimmy Carter’s administration ...

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