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ST. LOUIS - Bunge Global SA (NYSE:BG), a $10.3 billion agribusiness and food company currently trading at $77.07, has agreed to sell its North America dry corn and corn masa milling businesses to Grain Craft. The sale includes Bunge’s milling facilities in multiple U.S. states and Queretaro, Mexico. This move is part of Bunge’s strategic shift to concentrate on areas more integral to its global value chains. According to InvestingPro analysis, Bunge is currently undervalued, suggesting potential upside from this strategic repositioning.
Julio Garros, Bunge’s Co-President of Agribusiness, stated that the decision to divest these regional businesses aligns with the company’s focus on strengthening its core operations. He also acknowledged the milling team’s commitment to safety, efficiency, and quality product delivery to customers.
The transaction is subject to regulatory approval and standard closing conditions. The financial terms of the deal have not been disclosed.
Bunge, with its corporate headquarters in St. Louis, Missouri, has a significant presence in the agribusiness sector, processing oilseeds, and producing specialty vegetable oils and fats. The company prides itself on connecting farmers with consumers and has a workforce of about 23,000 employees in over 40 countries.
The sale to Grain Craft, a major independent flour miller in the United States, signifies Bunge’s ongoing efforts to optimize its business portfolio and focus on areas with stronger connections to its global value chains.
This news is based on a press release statement from Bunge Global SA.
In other recent news, Bunge Limited announced its fourth-quarter 2024 earnings, reporting an earnings per share (EPS) of $2.13, which missed the forecast of $2.27. The company’s revenue also fell short of expectations, coming in at $9.91 billion compared to the anticipated $13.73 billion. Despite this, Bunge achieved a record net profit for 2024 of $760 million. The company has set ambitious targets for 2025, aiming for a net profit exceeding €800 million and an EPS greater than €10. Bunge plans to continue integrating recent acquisitions, expecting a gradual recovery in the lending environment as interest rates stabilize. Analysts from Citi and Bernstein have shown interest in the company’s interest rate sensitivity and the impact of recent acquisitions, with further details to be discussed at Bunge’s upcoming Investor Day. Despite the earnings miss, CEO Anas Abazakou expressed optimism, emphasizing Bunge’s strong team and operational capabilities.
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