Metabolix Shares Down 55% After JV Termination
Metabolix shares are down more than 55% today after the company announced its joint venture with Archer Daniels had been terminated.
Metabolix (NASDAQ: MBLX) announced that the Archer Daniels Midland Company (NYSE: ADM) has given notice of termination of the Telles, LLC joint venture for PHA bioplastics. The effective date of the termination will be February 8, 2012. Metabolix will hold a webcast conference call for investors today at 5:00 pm EST.
Telles was established as a joint venture between Metabolix and ADM in July 2006. The joint venture sells PHA-based bioplastics, including Mirel and Mvera, in the US, Europe and other countries.
ADM recently undertook a strategic review of its business investments and activities and made the decision to focus resources outside of Telles. As the basis for the decision, ADM indicated that the projected financial returns from the alliance were too uncertain. After the termination, ADM will retain its manufacturing plant in Clinton, Iowa that has been producing Mirel resins for Telles.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.