Key Takeaways
- Bunge Global SA has signed agreements to sell its North America dry corn and corn masa milling businesses to Grain Craft, one of the largest independent flour millers in the U.S.
- The sale includes seven facilities across the U.S. and Mexico, located in Illinois, Indiana, Nebraska, Iowa, Texas, Kansas, and Queretaro.
- The divestment is part of Bunge’s strategy to refocus on core areas linked to its global value chains.
- The transaction follows Canadian approval of Bunge’s $34 billion merger with Viterra, subject to several competition-related conditions.
- The milling sale is subject to regulatory approval and standard closing conditions.
Bunge Divests Corn Milling Assets to Grain Craft
Strategic Sale Includes Facilities Across U.S. and Mexico
Bunge Global SA (NYSE: BG) has entered into definitive agreements to sell its dry corn and corn masa milling operations in North America to Grain Craft, a leading independent flour milling company. The agreement covers seven facilities in:
- Danville, Illinois
- Worthington, Indiana
- Crete, Nebraska
- Red Oak, Iowa
- Muleshoe, Texas
- Atchison, Kansas
- Queretaro, Mexico
“We carefully considered how this regional business fits with our long-term plans and made the strategic decision to focus on other areas of our core business that are more strongly connected to our global value chains,” said Julio Garros, Co-President, Agribusiness, Bunge.
Aligning With Global Strategy Amid Major Merger Developments
Focus Shifts to Core Value Chains
The divestiture is part of Bunge’s broader effort to align its business around its global agribusiness value chains, such as oilseeds, grains, and food ingredients. The company expressed appreciation for its milling team’s role in delivering high-quality products and maintaining safe and efficient operations.
The deal’s closing is subject to regulatory approvals and customary conditions.
Canadian Approval of Bunge-Viterra Merger Highlights Strategic Momentum
$34 Billion Merger Moves Forward with Conditions
This divestment announcement comes shortly after Canada approved Bunge’s $34 billion merger with Viterra Limited, subject to binding conditions to address competition and market concerns. The deal is expected to close in early 2025.
Key conditions of the merger approval include:
- Divestiture of six grain elevators in Western Canada to maintain competitive options for farmers
- A C$520 million (US$362 million) investment commitment over five years
- Retention of Viterra’s head office in Regina, Saskatchewan for at least five years
- Legal controls over Bunge’s minority stake in G3 to prevent influence over pricing decisions
- A price protection program for canola oil purchasers in Central and Atlantic Canada
“These conditions ensure that farmers continue to have competitive options,” said Anita Anand, Canada’s Minister of Transport and Internal Trade.
Industry Reactions to Merger Approval
Stakeholders Voice Cautious Optimism and Concern
Reactions within the Canadian agricultural sector have been mixed. Organizations such as the Agricultural Producers Association of Saskatchewan (APAS) and the Canadian Federation of Agriculture welcomed the conditions but urged continued attention to market competitiveness.
Meanwhile, the Grain Growers of Canada criticized the measures as “woefully inadequate,” raising concerns about reduced competition and farmer income impacts.
Outlook: Realignment and Consolidation in Agribusiness
Bunge Continues Global Expansion
With the Viterra merger progressing and the divestment of its corn milling business underway, Bunge is continuing to reshape its global operations. The decisions align with the company’s strategy to concentrate on core business segments and optimize its global network.
The outcomes of both transactions will depend on the effective implementation of regulatory conditions and the ability to maintain fair market access for agricultural producers.
