Bunge Terminates Merger Agreement with Corn Products
Since the nearly $5 billion merger deal was announced, corn prices have fallen to $4 a bushel from a high of $8 a bushel, and a deeper economic slowdown has clouded the outlook for food producers.
18/11/08 Bunge Limited has announced that its Board of Directors has voted to terminate the June 21, 2008 merger agreement between Bunge and Corn Products International, Inc., citing the decision of the Corn Products Board to withdraw its recommendation of support for the merger agreement with Bunge. Since the nearly $5 billion merger deal was announced, corn prices have fallen to $4 a bushel from a high of $8 a bushel, and a deeper economic slowdown has clouded the outlook for food producers.
"We remain disappointed with the decision of the Corn Products Board to withdraw its recommendation of the merger. 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," said Alberto Weisser, Bunge Limited's Chairman and Chief Executive Officer. "Moving forward, Bunge will continue to pursue its strategy of investing for growth in its core businesses and in complementary value chains."
Under the terms of the merger agreement, Corn Products is obligated to reimburse Bunge for up to $10 million of its costs and expenses incurred in connection with the transaction.
