Archer Daniels Midland, one of the largest ethanol producers in the US, is reconsidering plans to sell some of its dry mill plants after receiving low bids, company CEO Juan Luciano said Tuesday.
"We have evaluated the proposals received to date," Luciano said during an earnings call. "I have determined they will not deliver enough value for our shareholders. We continue to talk with interested parties and evaluate our value options."
ADM began soliciting bids in the first half of 2016, but kept an open mind about what could happen and alternative structuring of the plants, such as a joint venture.
But Tuesday's call suggested that the company plans on holding the assets for awhile longer, citing a possible change in tax structure.
"Frankly, as we think about tax reform coming in the United States it does open up some different considerations in terms of how to structure the transactions," said Ray Young, ADM vice president. "If there is tax reform and the corporate tax rate does come down, it does open up the avenue for us to look at some other mechanisms in order to look toward monetizing these assets."
House Republicans, led by Speaker Paul Ryan, have put forward a plan to reduce the corporate tax rate to a flat 20% from 35%.
But the new administration under President Donald Trump has not released any firm plans about tax changes.
Related biofuels video: RINs prices react strongly to US political news, despite uncertain impacts
Many of Trump's nominees for cabinet positions are still awaiting confirmation and legislation around tax reform would take time.
In the meantime, companies like ADM are waiting and considering how possible changes could affect their bottom line.
