Molino Cañuelas Sacifia to acquire Cargill’s wheat flour assets in Argentina

US-based agricultural products manufacturer Cargill has signed an agreement to sell its wheat flour assets in Argentina to Molino Cañuelas Sacifia, a flour and baked goods producer.

Financial details have not been divulged by the two companies.

The Argentinean company will acquire Cargill’s mills in Buenos Aires, La Pampa, Santa Fe and Chaco, as well as the whole process from wheat growing to distribution.

In the flour segment, Molino Cañuelas competes with Cargill’s brands Favorita and Blanca Flo.

Sources familiar with the matter were quoted by Just-food.com as saying that Cargill’s brands do not figure in the sale deal.

If the deal gets approval from the Argentinean regulatory authorities, Molino Cañuelas will have a 24% share in the wheat flour market.

Once the deal is completed, Molino Cañuelas will retain all the staff working in Cargill’s wheat flour division. Only a few key employees will be retained by Cargill.

Cargill was quoted by the website as saying: "That review concluded that the best prospects for growth for such wheat flour business would be under the ownership of Molino Cañuelas, one of the Argentine leading agribusinesses companies."

Following this acquisition, Molino Cañuelas expects to access new markets, including Central America and Africa.