In this file:
· ADM's takeover talks with Bunge break down
· Bunge shares drop on ADM deal talks stalling report
· WSJ: ADM, Bunge Takeover Talks Have Stalled
ADM's takeover talks with Bunge break down
By Gina Hall, Chicago Business Journal
Mar 9, 2018
Talks surrounding Archer Daniels Midland’s takeover of Bunge Ltd. have halted, jeopardizing a merger that would have created one of the world’s largest agricultural companies.
Prior to the breakdown, discussions were moving at a snail’s pace as the two companies considered how to avoid antitrust issues, according to The Wall Street Journal.
It is unknown if the talks will resume.
In early 2018, The Wall Street Journal reported that Chicago-based ADM (NYSE: ADM) contacted Bunge regarding a takeover. The move would have pushed ADM further into South American grain markets and aided its soybean-processing business.
The stalled talks may force leaders of the White Plains, New York-based Bunge to search for a different buyer as the agricultural sector struggles with an excess of crops across the globe. Last month, Bunge reported that its net income had fallen in 2017 from $745 million to $160 million.
ADM’s stumble could make way for mining company Glencore, which last year offered to buy Bunge. Bunge turned down Glencore’s offer and the two companies made an agreement that temporarily prevented Glencore from making a hostile bid for Bunge. That standstill agreement has since expired...
Bunge shares drop on ADM deal talks stalling report
Emiko Terazono in London, Financial Times
March 9, 2018
Shares in Bunge fell as much as 6 per cent on reports that takeover talks with Archer Daniels Midland had stalled.
ADM is said to have approached Bunge about a potential takeover that would combine two of the world’s four largest grain trading houses although traders and analysts had noted the lack of activity despite frenzied speculation.
Earlier this week analysts at JPMorgan said that the economics of a deal between Bunge and ADM were far from compelling...
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ADM, Bunge Takeover Talks Have Stalled
Discussions had been moving slowly because of deliberations on antitrust issues
By Jacob Bunge and Dana Mattioli, The Wall Street Journal
via Google - March 9, 2018
Takeover talks between Bunge Ltd. BG +1.17% and Archer Daniels Midland Co. ADM +2.56% have stalled, people familiar with the matter said, throwing into question a combination that could have formed one of the world’s largest agricultural conglomerates.
The two companies, already among the biggest global traders and processors of farm commodities, have been unable to reach an agreement despite more than a month of negotiations, the people said. The Wall Street Journal reported in January that ADM had approached Bunge about a takeover of the company that would vastly expand ADM’s reach into South American grain markets and boost its soybean-processing capabilities.
The talks had already been moving at a slow pace as the companies discussed ways to resolve potential pushback from antitrust and other authorities, the people said.
It isn’t clear whether the talks will pick up again.
The development could ratchet up pressure on Bunge’s management to explore other ways to boost its value, or find a different deal, as the agriculture industry remains under pressure from a global glut of crops. The White Plains, N.Y., company in February reported its net income in 2017 dropped to $160 million from $745 million, and Bunge last year unveiled a restructuring plan to cut $250 million in annual expenses by 2020.
Continental Grain Co., an investment firm that owns about 1.2% of Bunge’s shares, on Monday won U.S. approval to purchase more stock, a sign it intends to push management to find a deal or another way to create value...
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