AGRICULTURAL SECTOR
Leading US grain merchant Archer Daniels Midland pursues merger
Chicago and Calgary — Top US grain merchant Archer Daniels Midland (ADM) has proposed a takeover of Bunge, according to an informed source. If so, this could set up a bidding war with Swiss-based rival Glencore. US-based Bunge operates in more than 40 countries and is Brazil’s largest exporter of agricultural products, while Chicago-based ADM says it has customers in 160 countries. Large grain traders that make money by buying, selling, storing and shipping crops have struggled in recent years with global oversupplies. Thin margins have squeezed core commodity trading operations, including those of ADM, Bunge, Cargill and Louis Dreyfus, which dominate the sector. Consolidation is seen as one remedy. Glencore in 2017 sought a tie-up with Bunge in what was viewed as a start of a wave of mergers and acquisitions in the industry. Bunge, which rebuffed the Glencore offer, might not follow up on ADM’s proposal, the source said, requesting anonymity because the approach was confidential. A...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.