Ag products biz Bunge buying Corn Products for $4.4B

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Alberto Weisser, Bunge's chairman and chief executive officer, said the combination offers Bunge a chance to establish a global presence in the corn value chain, which complements its own operations.

"We believe that being present in more chains, overall there's going to be less volatility on the earnings," Weisser said in an interview.

Bunge, which was founded in 1818, has more than 25,000 employees in more than 30 countries

Corn Products, founded in a 1906 merger of leading corn refiners, will become a subsidiary of Bunge while maintaining its operational headquarters in Westchester, 10 miles west of Chicago. The company has operations in 15 countries at 34 plants, including wholly owned businesses, affiliates and alliances. Its $3.4 billion in 2007 revenues last year ranked it 616th among U.S. corporations.

Deutsche Bank analyst Christina McGlone said the combination offers appealing diversification in crops and product lines. Bunge, she said, is undertaking it from a position of strength and Corn Products will benefit immediately.

"We have long believed that absent logistics and distribution and given its regional business model, Corn Products would struggle as an independent company," she said in a note to investors. "This transaction gives the operation needed storage and infrastructure."

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