Bunge Ltd Ends Bid to Acquire Corn Products International

When the board of Corn Products International (CPO) recently announced it could no longer support the acquisition bid from Bunge Ltd (BG) for the company, the deal had little chance of going forward, and Bunge confirmed that today, announcing it had withdrawn its bid.

The primary reason wasn't the credit markets, because the deal was to be financed with stock. Rather, it was the fall in stock price of Bunge which made the deal undesirable to the Corn Products board.

Bunge was hoping to become a significant player in the finished corn products market, expanding from its core food processing business.

Now that the deal won't go forward, we'll probably see a new CEO announced soon to replace outgoing Corn Products CEO Sam Scott.

Bunge Ltd. Clears Regulatory Hurdle for Corn Products Deal

The Hart-Scott-Rodino Antitrust Improvements Act has been successfully fulfilled by Bunge Ltd. in its quest to acquire Corn Products International. It involved satisfying a required regulatory waiting period.

While international clearance and approval by shareholders is still waiting in the wings, the deal is expected to close sometime in the fourth quarter.

Bunge sells a number of agricultural commodities and food products. The price range of the stock has traded in a wide swoth of $84 to $135 over the last year.

Bunge has offered about $4.8 billion for Corn Products, which includes assuming about $414 million in debt.

Corn Products will continue operating under its existing brand name.