Bunge CEO reiterates willingness to consider consolidation, would prefer regional asset partnerships
03 AUG 2017
Bunge Limited [NYSE:BG] Chief Executive Soren Schroder has said the White Plains, New York-based agricultural commodities trader is willing to consider opportunities for consolidation, according to a newswire report.
A Bloomberg Markets report on Wednesday, 2 August quoted Schroder, who said Bunge’s board is not entrenched and is attentive to investors amid consolidation talks in the industry.
The Wall Street Journal reported on 23 May that the Switzerland-based commodities trader Glencore [LON:GLEN] had made an informal approach to Bunge, a move confirmed by Glencore on 24 May.
Bunge said the same day that it had not entered into talks with Glencore Agriculture Limited or Glencore plc about a business combination.
Schroder said shareholders have been giving the company feedback about strengthening its performance over the past two years, but added that there have been more inquiries in the past few months.
The CEO said that although Bunge would consider consolidation, he would prefer to enter into regional partnerships for Bunge’s assets. Schroder mentioned Bunge’s ports as an example of assets that he would enter into partnerships for.
The CEO went on to caution that Bunge might not meet its target of a 9% return on capital invested in 2017 and 2018.
Bunge Ltd’s market capitalisation stood at USD 10.89bn (EUR 9.19bn) at the close of trading in New York on Wednesday.