ADM Makes Bid for Merger with BungeADM Makes Bid for Merger with Bunge

American agribusiness Archer Daniels Midland (ADM) submitted an unsolicited offer to acquire global oilseed and grain firm Bunge Ltd, sources told the Wall Street Journal in an article published Friday.

ADM’s move on Bunge is competition with an offer made by agribusiness Glencore Plc this past May. Observers noted that ADM’s bid may lead to a bidding war and that the transaction would face significant regulatory hurdles. The combination could also offer both firms a range of benefits.

“The merger would make sense strategically for ADM because it would create significant scale in South American, European, and Asian markets, eliminate excess capacity in regions where margins have compressed and reduce its cost to serve customers and farmers globally,” Credit Suisse analyst Robert Moskow told the Financial Times.

A Bloomberg report posited that an ADM-Bunge merger could result in a company with revenues that would rival those of Cargill.

ADM and Bunge would not comment on the matter when contacted by various media outlets.

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