Bunge makes sweet corn deal

Bunge Ltd., a premier producer of fertilizer and soybean-based foods, has agreed to buy Westchester-based Corn Products International in an all stock deal worth $4.4 billion to gain access to its line of starches and sweeteners.  ┬á The sale "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," Bunge Chairman Alberto Weisser said Monday. He said Corn Products is the "leading pure-play franchise in corn refining and will add higher-margin starch and sweetener products" to the Bunge portfolio.┬á┬á The combined company will have about 32,000 employees with operations in 40 countries. Neither company expects to close any industrial facilities as a result of the transaction, although cost savings between $100 million and $120 million a year are expected from areas such as procurement and shipping.┬á┬á Corn ProductsÔÇÖ shareholders will receive $56 worth of Bunge stock for each Corn Products share, a premium of 31 percent over the closing price last Friday. The deal is expected to be completed before the end of the year, when Corn Products shareholders will own about 21 percent of Bunge's shares. ┬á┬á The purchase will allow Bunge to produce high-fructose corn syrup, a key ingredient used in many food and beverage products, including Coca-Cola. The global market for starches and sweeteners is growing about five percent each year, and Corn Products has some of the biggest beer and food makers in the world as clients.┬á┬á Sam Scott, Chairman, president and chief executive officer of Corn Products International, said, ÔÇ£I am excited by this combination. It represents a terrific opportunity to create value for our stockholders, enhance opportunities for our employees and provide benefits to our global partners and customers. 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.ÔÇØ ┬á┬á The boards of both Bunge and Corn Products have approved the deal, which still requires approval from regulators and shareholders.┬á┬á Bunge, founded in 1818 and based in White Plains, New York, had revenues last year of $26.3 billion. Corn Products, founded in 1906, had record net sales last year of $3.4 billion. Westchester will remain as the headquarters for the Corn Products subsidiary once the acquisition is completed.  Read Bunge's press release in full here.┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á