Soy Processor Bunge Approved To Buy Cereol

Soy Processor Bunge Approved To Buy Cereol

WHITE PLAINS, N.Y.--On Sept. 20, Bunge Ltd. received approvalfrom the European Commission (EC) to buy Cereol SA of France for approximatelyUS$808 million, according to a report by Reuters. This purchase makes Bunge theworld's No. 1 soybean processor. Additionally, Bunge is paying US$440 millionfor a 55-percent stake in Cereol from Italy-based Edison SpA. Bunge plans to buythe remaining 45 percent of the publicly traded company for US$31 per share, atotal of US$375 million. With Bunge's acquisition of Cereol, it is also buyingapproximately US$764 million of Cereol's debt.

In a statement from the EC, the international regulatory body felt the twocompanies' activities were complimentary to one another and, despite Bunge nowbeing the world's top oilseed-processing company, it would still face sufficientcompetition from other soybean processors worldwide.