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Bunge sold its wheat milling business in Mexico

Bunge entered into an agreement to sell substantially all of its wheat milling business in Mexico, a transaction scheduled to close in the second quarter of 2022.

On October 12, 2021, the company entered into an agreement regarding this sale in exchange for cash proceeds approximately equal to the carrying value of property, plant and equipment, net, plus an additional amount in consideration for the value of net working capital to be transferred at closing.

In addition, cumulative translation adjustments, among other items related to the disposal group, resulted in an impairment loss on sale of $170 million recognized in cost of goods sold for the year ended December 31, 2021.

Bunge: financial highlights 

The transaction is subject to regulatory approval and customary closing conditions.

Bunge’s milling segment includes businesses that sell wheat flour, baking mixes and corn-based products.

The operations and assets of its Milling segment are now located in North and South America.

Bunge

The company’s brands in Brazil include Suprema, Soberana, Primor and Predileta wheat flours, Gradina and Pre-Mescla bakery premixes and Ricca pastry cream.

Bunge’s wheat flour and bakery mix brands in Mexico include Espiga, Espiga Mix, Villa Rica, Cuauhtemoc, San Vicente, Manitoba and Escudo Plus.

Its corn milling products consist primarily of dry milled corn flours, dough and wet milled flours, flaked and brewer’s grits, as well as soybean-fortified corn flour, corn-soybean mixes, and other similar products.

As part of its corn product portfolio, it also sells whole grain and fiber ingredients.

In the United States, the company offers ancient grains, such as quinoa and millet, in its portfolio.

The company also produces a range of extruded products, including die-cut pellets for the snack industry.

In addition, it offers non-GMO products in the United States, including corn varieties.

The industry

Competition is based on a number of factors, including price, raw material procurement, brand recognition, product quality, nutritional profile, dietary trends and distribution capacity.

In Brazil, Bunge’s main competitors are M. Dias Branco, J. Macedo and Moinho Anaconda, as well as many small regional producers.

Its main competitors in Mexico are Elizondo Agroalimentos, Harinera Anáhuac, Molinera de México and Grupo Trimex.

Finally, its main competitors in corn milling in North America are Cargill, Didion, SEMO Milling, Life Line Foods and Gruma.

 

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