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Bunge Acquires CereolBunge Acquires Cereol

August 26, 2002

1 Min Read
Bunge Acquires Cereol

Bunge Acquires Cereol

BRAZIL--Bunge Ltd. announced on July 22 a definitive agreementto acquire a controlling stake of approximately 55 percent in France-basedCereol S.A., an oilseed processor, from Edison S.p.A. for 449.2 million euros incash. The acquisition, which was unanimously approved by Bunge's board ofdirectors, will include an initial cash purchase of Edison's 14 million sharesfor 32 euros per share. After the closing, Bunge will make an offer at the sameprice per share to purchase the remaining 45 percent of publicly held Cereolshares. Assuming 100 percent of the remaining shares are purchased as part ofthis process, the total price paid by Bunge for Cereol's equity will beapproximately 821.4 million euros. Bunge will also pay up to an additional 77million euros, at up to 3 euros per share, to Cereol shareholders upon theresolution of pending arbitration against Cereol. In addition, Bunge will assumeCereol's debt upon closing, which is expected to occur between late 2002 andearly 2003 and is subject to regulatory approvals in the United States and theEuropean Union. "The acquisition of Cereol makes Bunge the largest oilseedprocessor in the world with nearly 34 million metric tons of oilseed processingcapacity," said Alberto Weisser, chairman and chief executive officer ofBunge (www.bunge.com). "It expands ouragribusiness operations in North America and substantially enhances our presencein Europe, giving Bunge an even better geographic balance. It adds scale,enabling us to operate more efficiently through better logistics and highervolumes. It enables Bunge to reach a larger number of customers, with moreproducts and better service. Bunge will be better positioned to grow morequickly, give employees more opportunities and deliver enhanced value to ourshareholders."

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