ADM's Takeover Talks with Bunge Break Down
USAgNet - 03/13/2018
Talks surrounding Archer Daniels Midland's takeover of Bunge Ltd. have halted, jeopardizing a merger that would have created one of the world's largest agricultural companies. Prior to the breakdown, discussions were moving at a snail's pace as the two
companies considered how to avoid antitrust issues, according to The Wall Street Journal.
It is unknown if the talks will resume. In early 2018, The Wall Street Journal reported that Chicago-based ADM contacted Bunge regarding a takeover. The move would have pushed ADM further into South American grain markets and aided its
The stalled talks may force leaders of the White Plains, New York-based Bunge to search for a different buyer as the agricultural sector struggles with an excess of crops across the globe. Last month, Bunge reported that its net income had fallen in 2017 from
$745 million to $160 million.
ADM's stumble could make way for mining company Glencore, which last year offered to buy Bunge. Bunge turned down Glencore's offer and the two companies made an agreement that temporarily prevented Glencore from making a hostile bid for Bunge.
That standstill agreement has since expired.
Bunge, which originated from a Dutch company founded in 1818, moved to South America before making its headquarters in the United States. The company went public in 2001.