Bunge Limited

  • Overview

Bunge Limited grinds on in more than 40 countries. It operates through four business segments: An agribusiness segment processes, stores, and sells agricultural products. Processed agricultural products include oilseeds and grains, which are turned into vegetable oils and protein meals. Customers are animal feed, poultry, and aquaculture producers. The agribusiness markets vegetable oils used in the biodiesel industry. The edible oil products segment sells packaged oils, like shortenings and margarines under brands Bunge Pro, Floriol, and  Olek. A sugar and bioenergy unit makes sugar and ethanol, which are sold primarily in Brazil. Bunge also mixes and distributes crop fertilizers to farmers in South America.

More in line with its focus on agriculture and environmental concerns, Bunge in 2012 acquired London-based Climate Change Capital Group, parent to Climate Change Capital (CCC), a UK-regulated sustainable asset manager and advisor. CCC makes investments in projects, companies, and technologies, focusing on carbon finance, private equity, and property. 

Bunge intends to fuel growth by investing in projects that strengthen its leadership in grains, oilseeds, and food ingredients. In early 2012 Bunge's subsidiary in India acquired the edible oils and fats business of Amrit Banaspati. The purchase, which included the rights to the vanaspati (cooking oil) brand GAGAN, furthers Bunge's presence in the Indian consumer foods market. The deal followed Bunge's purchase (through its North American subsidiary) of a pair of margarine production facilities and their assets from The C.F. Sauer Company in mid-2011. Bunge scooped up an assortment of low saturated and trans-fat products for its North American customers, which include restaurants and food processors.

Bunge, however, is most interested in building its sugar and ethanol business. In 2010 Bunge added to its Brazilian sugar business with the acquisition of five sugarcane mills from Brazil's Moema Group. The mills have a capacity of almost 14 million metric tons. Taking advantage of the rising demand for ethanol, Bunge holds a number of US and foreign joint ventures that produce the corn-based fuel and bio diesel, including Bunge-Ergo Vicksburg and Southwest Iowa Renewable Energy in the US, and Eclogue in Argentina.

Given that fertilizer accounts for less than 10% of its total sales, Bunge exited part of the fertilizer business in 2010. It dropped its Brazilian fertilizer nutrients assets to Brazilian mining company Vale for $3.8 billion in cash. An offer too attractive to pass up, the move gave Bunge the financial flexibility to pay down its debt and invest in its ongoing core operations. The sale included two Brazilian phosphate mines and related facilities, along with a 42% interest in Fosfertil. Bunge kept its retail fertilizer business in Brazil, as well as its fertilizer business in Argentina (Petrobras Energia) and the US, and its 50% interest in a joint venture it has with Office Cherifien des Phosphates (OCP) in Morocco. The deal included an agreement with Vale to supply Bunge's retail fertilizer operations in Brazil. In late 2012 Bunge inked a deal to sell its Brazilian fertilizer business (including blending facilities, brands, and warehouses) to Yara International for $750 million in cash. As part of the purchase, which is expected to take place during the second half of 2013, Bunge will continue to supply fertilizer to farmers as part of its grain organization activities.

 AXA Financial owns about 10% of the company's stock.

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Bunge Limited


50 Main St.
White Plains, NY 10606
Phone: (914) 684-2800
Fax: (914) 684-3497
www.bunge.com

STATS


  • Employer Type: Public
  • Stock Symbol: BG,
  • Stock Exchange: , NYSE
  • Deputy Chairman: L. Patrick Lupo
  • Chief Executive Officer; Bunge EMEA: Tommy Jensen
  • CFO and Global Operational Excellence Officer: Andrew Burke

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