NEW YORK (CBS.MW) — Bunge Ltd. announced Monday a deal to pay 449.2 million euros ($454 million) in cash to Edison of Italy to acquire a 55 percent stake in French oil seed company Cereol.
White Plains, N.Y.-based Bunge
also plans to offer to buy the remaining 45 percent of Cereol, as required by French law.
For Bunge, the total transaction price would come to about $829 million. But the international grain and oil seeds firm said it would also pay up to an additional $78 million to Cereol shareholders upon the resolution of pending arbitration against Cereol. It also would assume Cereol’s debt, estimated at $760 million.
The deal is expected to close between late 2002 and early 2003 and is subject to regulatory approvals in the U.S. and the European Union.
The acquisition of Cereol will make Bunge the largest oilseed processor in the world with nearly 34 million metric tons of oilseed processing capacity.
“It expands our agribusiness operations in North America and substantially enhances our presence in Europe, giving Bunge an even better geographic balance,” said Alberto Weisser, chairman and CEO of Bunge, in a statement.
View more information: https://www.marketwatch.com/story/bunge-to-buy-cereol-creating-top-oilseed-processor