ADM's takeover talks with Bunge suspended
Talks surrounding Archer Daniels Midland’s takeover of Bunge Ltd. halted, jeopardizing a merger that would have created one of the world’s largest agricultural companies, Bizjournals writes.
Prior to the breakdown, discussions were moving at a snail’s pace as the two companies considered how to avoid antitrust issues, according to The Wall Street Journal. It is unknown if the talks will resume.
Shares in Bunge fell as much as 6% on reports that takeover talks with Archer Daniels Midland had stalled.
An ADM merger with Bunge would probably face significant antitrust hurdles in the U.S. and perhaps in Brazil and China. To satisfy regulators, a deal would likely require the divestment of assets such as silos and processing plants in North America, certain to attract interest from competitors.