Bunge and Corn Products Int. merge
Agriculture heavyweight Bunge Ltd. will buy Corn Products International Inc. in a stock deal worth about US$4.4-billion, the company said Monday.
At the equivalent of $56 for each Bunge share, the buyout represents a 31%
premium to Corn Products’ closing share price of $42.90 on Friday. Two of
America’s oldest agricultural businesses would become one in the deal, in which
Bunge would also assume $414-million of Corn Products’ debt.
The buyout
will combine Corn Products’ sweeteners, starches and other ingredients with
Bunge’s portfolio of agribusiness, fertilizer, edible oil and milling products.
The global market for starches and sweeteners alone is growing at approximately
5% each year, and the company has some of the biggest beer and food makers in
the world as clients.
Bunge, founded in 1818 and headquartered in White
Plains, New York, has more than 25,000 employees in more than 30 countries. Corn
Products will maintain its operational headquarters in Westchester,
Ill.
Join 26,000+ subscribers
Subscribe to our newsletter to stay updated about all the need-to-know content in the feed sector, three times a week.
