Bunge agrees to divest 35 grain elevators in US

Global agribusiness and food company Bunge has agreed to divest 35 of its US interior elevators to Zen-Noh Grain.

Financial details of the deal have not been revealed by either company.

Bunge CEO Greg Heckman said: “This transaction will allow Bunge to operate more efficiently and reinvest in higher returning areas of the company while reducing costs and strengthening our balance sheet.

“Bunge will continue to be an industry leader in the US grain marketplace through global grain trading and distribution with our export terminals in Destrehan, Louisiana, which we are expanding, and EGT, our joint venture in the Pacific Northwest.

“We will also continue our strong presence in the soybean processing business and milling operations.”

Bunge noted that it will retain ownership of Bunge-SCF Grain, a joint venture (JV) between Bunge and SGF, as well as continue to own Bunge elevators in Indiana, which support the firm’s soybean processing plant in Morristown.

It will continue to own export terminals in Destrehan and the EGT JV.

Bunge will also have access to a distribution network through Zen-Noh under certain agreements to better serve farmers in the US and global export customers.

Completion of the deal is subject to customary closing conditions as well as regulatory approval.

In October 2018, Bunge, along with global food companies Archer Daniels Midland Company (ADM), Cargill and Louis Dreyfus Company (LDC) agreed to focus on ways to standardise and digitise agricultural shipping transactions worldwide.

The companies agreed to initially concentrate on developing technologies that automate grain and oilseed post-trade execution processes.