A possible merger between agriculture giants Archer-Daniels-Midland Co. and Bunge Ltd. has circulated within the past few days, according to a Bloomberg, citing a person briefed on the matter over the weekend. The news comes less than a year after Glencore Plc approached Bunge about a deal.
Neither company had responded to the report, which raises the possibility for a bidding battle between ADM and Glencore. Sources also anticipate much regulatory review.
Both companies have a relatively small involvement in fertilizer, compared to their grain operations.
An Israeli Finance Ministry team has proposed moving forward the concession for mining rights at the Dead Sea to 2020. The concession which is currently held by Israel Chemicals Ltd. is due to terminate in 2030. The team is also recommending that a tender be issued with a minimum price, and the formation of a government company as a possible alternative for operating the concession. In 1998 the Israeli government privatized ICL. The team believes that a government company could serve as a credible alternative in the event ICL does not win the tender.
Finance Ministry sources said the team came to the conclusion about the concession due to ICL statements that it might cease further investments in production facilities and infrastructure at the Dead Sea. ICL has not reacted to the proposals.
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