Global agribusiness and food company Bunge has struck a deal to acquire the international sugar trading and marketing division of Tate & Lyle.
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The acquisition is being made in a bid to strengthen Bunge’s position in the sugar value chain by expanding its international trading activities and creating a stronger network for sugar origination in Brazil and Thailand.
This is the second acquisition in the last month for Bunge who recently struck a deal to buy food ingredients firm Corn Products International for US$4.8bn.
At the first stage of the sugar acquisition, the operations and employees of Tate & Lyle’s international sugar trading business will transfer to Bunge. The working capital in the business will remain with, and be collected and paid by, Tate & Lyle through to 31 March 2009, at which point it will be assumed by Bunge upon final completion of the transaction.
“Bunge’s strategy is to expand into complementary value chains, and sugar is an essential one,” said Archie Gwathmey, co-CEO, Bunge Global Agribusiness. “In the past two years we have established a sugar marketing and trading operation and purchased a sugarcane mill in Brazil. Strengthening our global team is a natural next step.”
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By GlobalDataThe completion of the transaction is subject to the receipt of certain regulatory approvals and other customary conditions.
