Minnesota Corn Processors LLC has agreed to merge with a subsidiary of agribusiness giant Archer Daniels Midland in a move that would bolster ADM's market-leading ethanol production capacity.
The merger was subject to shareholder approval, and MCP said it was tentatively planning a vote in late August.
"Liquidity and value are two of the areas that our MCP shareholders have repeatedly asked us to address. This transaction, if approved by the voting members, will answer those two areas of concern," said MCP CEO Dan Thompson.
MCP was ADM's chief competitor in the ethanol market, and the combined companies would control almost half the US production of ethanol. This hefty market share could benefit from a recently passed Senate energy bill which calls for a tripling in US ethanol production over the next decade.
MCP also produces corn sweeteners and starch products for sale in the beverage and food industries, and owns and operates 19 corn sweetener distribution terminals nationwide.
The company also produces starches for sale to the paper industry, as well as feed products.