NEW YORK: Commodities giant Glencore has approached US agribusiness firm Bunge about a “possible consensual business combination,” the company said Tuesday.
Shares of Bunge surged on reports of the talks, which were confirmed in the Glencore statement, released in mid-afternoon.
However, the company cautioned that “Following this informal approach … discussions may or may not materialise and there is no certainty that any transaction will occur.”
Switzerland-based Glencore is a mining and commodity giant that owns hard assets and trading units, and operates in metals, energy and agriculture. In 2016, it had revenues of $177.4 billion.
Bunge is a global producer and processor of oilseeds, grains and other agricultural goods, as well as producer of ethanol in Brazil and global trader of sugar. It had 2016 revenues of $42.7 billion.
Glencore’s approach to Bunge is a sign it has turned a corner after a two-year slump in commodity prices that prompted chief executive Ivan Glasenberg to scrap dividends, sell assets and trim debt.