Archer-Daniels-Midland Co. (ADM) has confirmed its agreement with Merrill Lynch International, a division of BofA Securities, Inc., to conduct an accelerated share repurchase, or ASR, of $1 billion worth of ADM's common shares.
This ASR agreement will operate within the parameters of ADM's existing share repurchase program, which aims to buy back 200 million shares by 2024. ADM is expected to receive the repurchased shares on a monthly basis, commencing in March 2024. The process is estimated to be completed by the end of the second quarter of 2024.
CEO Juan Luciano revealed plans to accelerate their current program with a goal of achieving $2 billion in additional share repurchases this year. This includes the $1 billion worth of shares planned for repurchase under the current ASR program.
Previously, the company successfully repurchased $1.5 billion of shares during the last quarter of 2023. They also bought nearly $330 million of shares during the initial quarter of 2024.
