On Thursday, Archer Daniels Midland (ADM) announced that it plans to exit the cocoa business.
The agricultural giant said that it is in negotiations with to sell its cocoa unit in a deal that could be worth $2 billion. ADM has reportedly began courting potential suitors for the unit about a year and a half ago, Reuters notes.
ADM did not identify any potential buyers for the cocoa unit.
Last year, ADM’s cocoa and other processing business generated sales of $3.7 billion, up slightly from the prior year. However, the segment’s profits fell to $183 million, down $57 million compared to 2011.
ADM’s move comes as cocoa processors are facing falling prices for cocoa ingredients. The company is concentrating on its global grains business as Chinese demand for wheat and other grains grows.
Shares of Archer Daniels Midland climbed more than 2% in Friday morning trading.