Tuesday, March 6, 2018

Continental Grain Increases Stake in Bunge (BG)

From the World Grain Council:
NEW YORK, NEW YORK, U.S. — It appears Continental Grain Co., a powerful force in the global grain industry for many years, could play a key role in the potential sale of U.S.-based agribusiness giant Bunge.

Multiple media outlets on March 5 reported that Continental Grain, an investor in agricultural and food businesses, has filed with regulators about a previously undisclosed position in potential takeover target Bunge and plans to hold discussions with the U.S. agricultural commodity trader about a potential sale.

Continental, which owns 1% of Bunge, has secured approval from U.S. regulators to buy more shares, according to reports.

Under the U.S. Federal Trade Commission’s Hart-Scott-Rodino Act, if a group or individual purchases more than $84 million of stock in a company its investment is considered “non-passive,” it needs clearance to increase its position, which would allow it to hold talks with that company about things such as strategy.

Bunge, which has a market valuation of about $11 billion, has been a takeover target during the past year. In early 2017, Glencore, a swiss miner and commodity trader, approached Bunge with an offer but was rebuffed. More recently, Archer Daniels Midland Co. (ADM) reportedly held discussions with Bunge about a possible deal that would combine two of the world’s largest grain traders....MUCH MORE