ADM Has Made Takeover Approach to Bunge Ltd.
January 19 2018 - 4:26PM
Dow Jones News
By Dana Mattioli and Jacob Bunge
Archer Daniels Midland Co. has made a takeover approach to Bunge
Ltd., according to people familiar with the matter, setting up a
possible bidding war after Glencore PLC earlier made an overture to
the agricultural powerhouse.
Details of the ADM approach are unclear and it's possible
neither company would succeed in buying Bunge, which had a market
value of about $9.8 billion as of Friday afternoon. ADM's valuation
was $22.6 billion.
Mining conglomerate Glencore approached White Plains, N.Y.-based
Bunge, which ranks among the world's largest traders and processors
of crops like soybeans and corn, The Wall Street Journal reported
in May. The two companies have a standstill arrangement that
temporarily prevents Glencore from making a hostile bid for Bunge.
It's unclear whether the expression of interest from ADM negates
the standstill, which expires in coming weeks, and enables Glencore
to make another move now.
Glencore has been widely expected to re-engage with Bunge once
the standstill expires though it's unclear what its intentions are
at present.
ADM and Bunge represent the "A" and "B" in the so-called ABCDs,
the global commodity-trading companies that dominate the world-wide
flow of basic foodstuffs. Minnesota-based Cargill Inc. and Louis
Dreyfus Commodities, headquartered in the Netherlands, are the
other two.
--David Benoit contributed to this article.
Write to Dana Mattioli at dana.mattioli@wsj.com and Jacob Bunge
at jacob.bunge@wsj.com
(END) Dow Jones Newswires
January 19, 2018 16:11 ET (21:11 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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