Tuesday, 24 June 2008

Agribusiness companies merge in the United States

NEW YORK: Bunge, a producer of fertilizers and a processor of oilseeds, said Monday that it would buy Corn Products International for $4.4 billion to gain a leading position in the market for finished corn products like starches and sweeteners.
The deal, which unites two of the oldest agricultural businesses in the United States, comes as ethanol production, as well as demand for food in developing economies like India and China, is driving up prices for corn.
The agreement calls for the exchange of one share of Corn Products for a percentage of Bunge shares that will have a value of $56 at the closing of the deal. The offer represents a 31 percent premium to the closing price of Bunge stock on Friday.
Bunge said it expected the transaction to lead to annual savings of $100 million to $120 million. Corn Products shareholders will own about 21 percent of Bunge once the deal closes.


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