May 23, 2017

1 Min Read
Glencore Mulls North American Partnership with Bunge
Image courtesy of Bunge Limited

Prominent agribusiness firm Bunge Ltd. recently engaged in discussions with Glencore Plc’s agricultural unit about the prospect of forming a partnership in North America, Reuters reported Tuesday, citing information from unnamed sources.

Glencore issued a statement confirming that Glencore Agriculture Limited confirming “an informal approach to Bunge Limited regarding a possible consensual business combination” occurred. The Swiss commodity production, processing, and trading firm cautioned that “discussions may or may not materials and there is no certainty that any transaction will occur.”

Reuters said that shares of Bunge rose as a result of media reports on the talks between the companies and fueled conversations about possible changes in the grain trading business ahead.

“Such talks fueled ongoing speculation that, after a string of poor results, the world’s big grain trading houses are ripe for a wave of consolidation similar to the mergers and acquisitions in the farm chemicals and seed industries,” the news wire service observed.

White Plains, NY-based Bunge issued a separate statement following Glencore’s press release stating that the firm is “not engaged in business combination iscussions with Glencore Agriculture Limited or Glencore Plc.”

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