US oil giant takes a slice of Europe

- Last updated on GMT

Related tags: Fat, Bunge

Italy's energy group Edison is in the news again today as
international grain and oil seeds firm Bunge reports that it has
offered to buy a 55 per cent stake in Edison's French oil seed
company Cereol. The Bunge offer stands at €449.2 million or €32 a
share.

Italy's energy group Edison is in the news again today as international grain and oil seeds firm Bunge reports that it has offered to buy a 55 per cent stake in Edison's French oil seed company Cereol. The Bunge offer stands at €449.2 million or €32 a share.

As required by French law, New York-based Bunge is also offering to buy the remaining 45 per cent of shares still publicly traded. If the offer is successful, Bunge would pay a total of €821.4 million for Cereol. It would also pay €3 a share to Cereol shareholders on the resolution of pending arbitration against Cereol and assume about €757m in debt.

"The acquisition of Cereol makes Bunge the largest oilseed processor in the world with nearly 34 million metric tons of oilseed processing capacity,"​ said Alberto Weisser, Chairman and CEO of Bunge in a press release. "It expands our agribusiness operations in North America and substantially enhances our presence in Europe."

According to the release, the agreement has been unanimously approved by Bunge's board.

Edison and Cereol were formerly part of agro-industrial Italian conglomerate Montedison, renamed Edison after it was bought by Fiat-led consortium Italenergia last year.

Related topics: Market Trends

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