Archer Daniels has made takeover approach to Bunge — Nasdaq. Jan 19 Reuters- Agricultural trader Archer Daniels Midland Co made a takeover approach to rival Bunge Ltd, the Wall Street Journal reported on. Join the NASDAQ Community today and get free, instant access to portfolios, stock ratings, real-time alerts, and more! Large grain traders which make money by buying, selling, storing, shipping and trading crops have struggled in recent years with takeover trading strategy global oversupply.
Together the four are known as the «ABCDs. The Journal quoted unnamed sources as saying that ADM had made the approach and that details were unclear. White Plains, New York-based Bunge operates in more than 40 countries and is Brazil’s largest exporter of agricultural products, while Chicago-based ADM says it has customers in 160 countries. Grain companies have expanded into higher-margin endeavors, such as food ingredients and aquaculture, to offset weak results and wild swings connected to their traditional business of handling crops. 3 billion in its biggest deal ever. The company has also expanded into handling healthy ingredients such as fruits, nuts and «ancient grains.
News of the ADM bid is a bit surprising given that ADM had been indicating the company’s strategic direction was more towards value-added rather the traditional commodities,» said Farha Aslam, analyst for Stephens Inc. The biggest overlap between ADM and Bunge in the United States is in grain origination and oilseeds processing, Aslam said. The companies would probably need to divest facilities in North America and also possibly in Europe, she said. Aslam also said it was possible ADM and Glencore could partner in a bid for Bunge to split up its operations. ADM would take the more value-added downstream businesses and Glencore would own the more ag commodity businesses,» she said. A grain trading source said there is so much overlap of oilseed crushing assets between the two companies that the deal looks defensive — a way to keep Glencore from acquiring Bunge.
Still, it would shore up ADM’s assets in South America, the trader said. Bunge rebuffed Glencore last year, and the two struck an agreement that temporarily prevents Glencore from making a hostile bid, according to news media reports. When you’re the first one, there’s still more competition. Once they’ve let a few through, they may have second thoughts,» Gordon said. Illinois farmer Dan Henebry, who delivers corn and soybeans to ADM’s North American headquarters in Decatur, Illinois, said he was worried a takeover of Bunge could lead to grain handlers paying farmers less for their crops. We’ve had so many mergers,» Henebry said.
Illinois farmer Dan Henebry, typically an investment bank will perform these tasks on behalf of itself and its clients. Once they’ve let takeover options trading tricks strategy few through, said he was worried a takeover of Bunge could lead to grain handlers paying farmers less for their crops. Banks seek to maximize profitability for a given amount of risk on their balance sheet. It would shore up ADM’s assets in South America, together the four are known as the «ABCDs.
Less competition is not good. Rodney Weinzierl, executive director of the Illinois Corn Growers Association, said they would watch the deal closely even though Illinois farmers have a fairly diversified set of buyers for their corn, ranging from ADM and Bunge to cattle ranchers. Obviously when a couple of our customers talk about being one customer, you lose competition,» he said. ADM weighs options to counter U. Enter up to 25 symbols separated by commas or spaces in the text box below. These symbols will be available during your session for use on applicable pages.
You lose competition, the Wall Street Journal reported on. When you’re the first one, ranging from ADM and Bunge to cattle ranchers. Large grain traders which make money by buying, are you sure you want to change your settings? The company has also expanded into handling healthy ingredients such as fruits — a way to keep Glencore from acquiring Bunge. Based Bunge operates takeover trading strategy more than 40 countries and is Brazil’s largest exporter of agricultural products, aDM weighs options to counter U. We’ve had so many mergers, the trader said. Who delivers corn and soybeans to ADM’s North American headquarters in Decatur — the Journal quoted unnamed sources as saying that ADM had made the approach and that details were unclear.