ADM said close to Bunge deal

(Reuters) —Archer Daniels Midland Co. could reach an agreement to buy Bunge Ltd. as early as this week, Bloomberg reported Feb. 5, citing unnamed sources familiar with the matter.

The potential deal comes as large grain traders have struggled with global oversupplies and thin margins.

An ADM spokesperson said in an email the company does not comment on “rumours or speculation.”

Any deal would likely face stiff scrutiny from government regulators and opposition from U.S. farmers who fear that handing more market control to ADM could hurt wheat, corn and soybean prices. The companies would probably need to sell facilities in North America, such as grain silos, to win approval for a deal, analysts said.

A tie-up could also spark a bidding war for Bunge with Glencore, which already made an unsuccessful approach to Bunge last year. As well, Glencore could buy assets that ADM and Bunge divest.



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