ADM deal for sweetener manufacturer in China falls through -CEO

By Tom Polansek

CHICAGO, Aug 4 (Reuters) - Archer Daniels Midland Co's plans to acquire a privately held sweetener manufacturer in central China have fallen through, the U.S. agribusiness company's chief executive officer said on Tuesday.

The deal for Meiweiyuan Biotechnology Co failed due to a disagreement on closing conditions, an ADM spokesman said, without providing more details.

In May, the Chicago-based company said it had struck a deal to buy Meiweiyuan Biotechnology, in the central Chinese province of Hubei, to "better meet demand for starches and sweeteners from customers in central and western China." Financial details were not provided.

Expansion in high-growth regions like China is a key part of ADM's strategy to improve returns and reduce the volatility of earnings affected by swings in crop markets.

Last year, ADM began production at a new sweetener facility in Tianjin, China, providing access to customers in the northern part of the country and to Asian export markets.

CEO Juan Luciano said on a conference call to discuss second-quarter earnings on Tuesday that the deal for Meiweiyuan Biotechnology had fallen through.

Adjusted earnings in the quarter declined to 60 cents per share from 79 cents a year ago, missing analysts' estimates.

(Editing by Jeffrey Benkoe)