Archer Daniels Midland is reportedly in advanced talks to buy fellow US-based, agri-food giant Bunge.
Bloomberg, citing unnamed sources, said today (5 February) a deal could be struck this week.
Both companies are among the largest agricultural traders worldwide and feature in the so-called ABCD group of businesses, alongside Cargill and Louis Dreyfus.
Bunge also markets a range of consumer-facing products, including Brazilian rice-to-margarine brand Primor, Optima margarine in Europe and Komili olive oil in Turkey.
Approached by just-food, neither company would be drawn on the Bloomberg report.
“We don’t comment on rumours or speculation,” an ADM spokesperson said.
In a short statement, Bunge said: “The company declines to comment.”
ADM is scheduled to report its 2017 results on Tuesday.
ADM’s business includes the processing of commodities including oilseeds, corn and wheat. It also manufactures products including protein meal, vegetable oil, corn sweeteners, flour, as well as other “value-added” food ingredients such as flavours.
The company owns just short of 24% of Singapore-based agribusiness group Wilmar International, which counts among its assets the Australia-based food manufacturer Goodman Fielder.
ADM has a fifty-fifty venture with Associated British Foods – Stratas Foods – which markets edible oil products in North America. It also has ventures to sell similar products in Europe with UK-based Princes.
The group generated revenues of $62.35bn in 2016, down from $67bn a year earlier. Its net income stood at $1.28bn, versus $1.85bn in 2015.
Bunge posted 2016 net sales of $42.94bn, compared to $43.46bn in 2015. The company’s net income was $709m, against $738m.
