Home

News 237 views last update:7 Aug 2012

Bunge cancels Corn Products takeover

Bunge Limited's board of directors voted to terminate the planned takeover of Corn Products International Inc.

Bunge had made a $4.8 billion in an all-stock offer for Corn Products but the bid's value dropped to about $1.7 billion since amid dropping crop prices and a weakening economy.

Last week Corn Products' board of directors said it wanted to withdraw its recommendation of support for Bunge Limited's proposed all-stock takeover offer.

Corn Products, of Westchester, Ill., must now reimburse Bunge for up to $10 million of its costs and expenses incurred in connection with the deal.

"We remain disappointed with the decision of the Corn Products Board to withdraw its recommendation of the merger," said Alberto Weisser, Bunge Limited's chairman and CEO.

"While we continue to believe in the long-term strategic benefits of a merger between Bunge and Corn Products, after careful consideration we have determined that it would not be in the best interests of our company or shareholders to pursue the transaction at this time."

Corn prices down
Since the deal was announced, corn prices have fallen to $4 a bushel from a high of $8 a bushel, and a deeper economic slowdown has clouded the outlook for food producers.

Looking ahead, Bunge said it will continue to pursue its strategy of investing for growth in its core businesses and in complementary value chain.

Editor AllAboutFeed

Or register to be able to comment.