US-based agribusiness Bunge has struck a deal to buy food ingredients firm Corn Products International for US$4.8bn.
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Bunge, which makes fertilizers, oils and grains, said it had secured an agreement to buy Corn Products in a $56-a-share deal.
The move will see Bunge produce finished corn products like starches and sweeteners, including high fructose corn syrup.
Bunge chairman and CEO Alberto Weisser said: “Combining with Corn Products provides a unique opportunity for Bunge to establish an integrated, global presence in the corn value chain, which is highly complementary to our existing operations.”
Corn Products shareholders will acquire a 21% stake in Bunge as part of the deal. Sam Scott, chairman, president and CEO of Corn Products, said: “Our stockholders will have an ongoing equity interest in a combined company that is well-positioned to serve customers around the world with a broad product portfolio, integrated distribution network and innovative products.”
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By GlobalDataBunge flagged the “commercial, geographic and operational opportunities” of the proposed deal.
The company pointed to the growth of the starches and sweeteners market, which is expanding at 5% a year, and an enlarged presence in markets in China, India, Latin America, Asia and Africa.
Bunge also expects to generate annual cost-savings of $100-120m a year in procurement and logistics.
