Bunge terminates buyout of Corn Products
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- November
- 10
Increasing numbers of mergers and acquisitions are falling apart as the global financial crisis, a volatile stock market and economic slowdown alter deal dynamics.
The list of broken buyouts now includes an ill-fated acquisition involving Bunge Ltd., a White Plains-based agribusiness giant.
Bunge officially ended its efforts to buy Corn Products International Inc. today when it announced that its board voted to terminate the deal. As stock markets slumped in recent weeks, the buyout had become less appetizing to Corn Products. The original $4.2 billion value of the buyout had plunged by about 60 percent since it was announced in June because of a steep fall in Bunge’s stock price.
Last week, the board of Corn Products withdrew its support for the acquisition.
“While we continue to believe in the long-term strategic benefits of a merger between Bunge and Corn Products, after careful consideration we have determined that it would not be in the best interests of our company or shareholders to pursue the transaction at this time,†Bunge Chief Executive Officer Alberto Weisser said in a written statement.
A takeover of Corn Products would have expanded Bunge’s product lineup to include corn sweeteners for soft drinks and processed foods.
Corn Products must reimburse Bunge for up to $10 million of transaction expenses under the terms of the merger agreement, according to Bunge.
This entry was posted
on Monday, November 10th, 2008 at 4:35 pm by Jay Loomis.
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