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October 14, 2019Cart

Business

by Westchester County Business Journal
by WCBJ

White Plains’ Bunge buys U.S. corn flour mills amid reports of potential takeover

Bunge Ltd., a global grain trader headquartered in White Plains, has announced that it has acquired two U.S. corn flour mills. The deal comes after reports that Bunge was approached by rival Archer Daniels Midland Co. for an acquisition that would mark a major consolidation in global agribusiness.

Bunge announced the acquisition of the two mills, in Iowa and Texas, through the purchase of Minsa Corp., a wholly owned U.S. subsidiary of Mexican corn flour producer Grupo Minsa S.A.B. de C.V. Minsa Corp. is valued at $75 million, according to Bunge.

Bastean

Todd Bastean, president of Bunge North America, called the deal “an important strategic step to strengthen our food and ingredients business in the U.S.” The company said the deal will allow it to serve a growing demand for tortillas and tortilla chips.

The company said the acquisition, combined with its portfolio of shortenings and oils, makes it the only major supplier of all key ingredients used to manufacture tortillas.

The acquisition follows rumblings earlier this month in the national business press that Bunge could be acquired. The company has reportedly been approached by rival ADM. The deal could merge two of the biggest grain trading companies in the world.

ADM, based in Chicago, and Bunge are part of what is often referred to as the ‘ABCDs’ of the global grain trade, representing its four largest companies. Cargill Inc. in Minnesota and the Dutch Louis Dreyfus Co. are the the other two companies.

Bunge is valued at about $10 billion, ADM around $23 billion. The Wall Street Journal reported Jan. 19 that Bunge could find itself in the middle of a bidding war, as Swiss mining conglomerate Glencore already approached Bunge about a takeover last fall.

Bunge renewed a lease in 2012 for its 65,000-square-foot headquarters in the Westchester Financial Center at 50 Main St. in downtown White Plains, a Mack-Cali Realty Corp. property.

Bunge was founded in the Netherlands in 1818 and operates in more than 40 countries with approximately 32,000 employees.