Bunge,Corn Products and Republic, Allied Merge

123jump.com Staff
23 Jun, 2008
New York City

Corn Products agreed to be acquired by Bunge Limited in all stock transaction that may value the company between $4.4 billion and $6 billion. Bunge will assume debt of $414 million and will pay between 0.42 and 0.5142 of its share. In addition, Republic Services Group and Allied Waste have agreed to merge. The shareholders of Allied will hold 52% of the combined waste collection company.

[R]1:30PM New York – Bunge acquires Corn Products at $4.8 billion and Republic Services and Allied Waste Limited agree to merge.[/R]

Bunge Limited agreed to acquire Corn Products International, Inc in all-stock transaction valued at $4.8 billion and assume the debt of $414 million.

Corn Products shareholders will receive shares in Bunge valued at $56 per share or between 0.42 and 0.5142 of Bunge Limited share in exchange. The final determination of the price will be based on the market price at the date of the shareholder meeting.

Corn Products which began trading as a new issue in Jan of 1998 around $15 per share has grown through acquisition in the last ten years. The company acquired corn refiners in Mexico, in Pakistan, in South Korea and in Thailand. In addition, the company has investment stakes in corn processing businesses in China, South Korea and in Japan.

Corn Products in the latest quarter ending in March reported revenue of $931 million and earnings of $64 million and in 2007 reported revenue of $3.3 billion and net income of $198 million.

Bunge Limited, based in White Plains, New York in the latest quarter reported revenue of $12.5 billion and earnings of $289 million. For the year 2007, the company reported revenue of $37.8 billion and earnings of $778 million. Bunge operates more than 450 mills and processing facilities in 32 countries and sells, wheat flour and other food products, fertilizer and provides trading and storage services for agricultural commodities.

Bunge Limited ((BG)) stock fell $15.03 to $107.14 and Corn Products stock ((CPO)) surged $6.81 to $49.71.

The boards of directors of Republic Services, Inc and Allied Waste Industries, Inc have agreed to merge the two companies. Republic will issue 198 million shares to the shareholders of Allied and assign 0.45 share of Republic for each share of Allied. Of the combined companies Allied shareholders will hold 52% of the company.

The environment services and waste collection services combined companies will have total revenue of $9 billion and market capitalization of $12 billion.

Both companies expect the merger will save $150 million in savings and the merger is expected to complete in the fourth quarter of this year.

Republic Services Group ((RSG)) fell 17 cents to $31.02 and Allied Waste ((AW)) dropped 49 cents to $13.07.