Agriculture giants combine in $4.4B deal
Written on June 25, 2008
Agriculture heavyweight Bunge Ltd. will buy Corn Products International Inc. in a stock deal worth about $4.4 billion, the company said Monday.
At the equivalent of $56 for each Bunge (BG) share, the buyout represents a 31% premium to Corn Products’ (CPO) closing share price of $42.90 on Friday.
Two of the nation’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 faxless payday advances.
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, N.Y., has more than 25,000 employees in more than 30 countries
Corn Products will maintain its operational headquarters in Westchester, Ill.
Filed in: business.