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ADM, Bungee Talks Advancing | KRVN Radio

ADM, Bungee Talks Advancing

Talks between ADM and Bungee are advancing, and ADM says it could reach an agreement to purchase Bungee as soon as this week. Archer Daniels Midland, or ADM, proposed a takeover of Bunge last month, as Reuters points out that large grain traders that make money by buying, selling, storing and shipping commodity crops have struggled with global oversupplies and thin margins.

While ADM and Bunge declined to comment on the talks, anonymous sources say an agreement could be reached this week. The potential agreement would continue the round of farm sector consolidation, with completed mergers of DowDupont and between ChemChina and Syngenta, along with the pending merger of Bayer and Monsanto.

Reuters says any deal between ADM and Bungee would face stiff regulatory scrutiny and likely opposition from U.S. farmers who fear the move could hurt grain prices. As of Friday, Bunge had a market value of about $11 billion, while ADM was valued at $23 billion.

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