(Reuters) – Agricultural trader Archer Daniels Midland Co (ADM.N) made a takeover approach to rival Bunge Ltd (BG.N), the Wall Street Journal reported on Friday, citing people familiar with the matter. on.wsj.com/2mSY8L0
Archer Daniels’ move comes after Bunge rebuffed a takeover approach from rival Glencore (GLEN.L) last year.
Glencore and Bunge struck an agreement that temporarily prevents Glencore from making a hostile bid, according to news media reports.
Large grain traders have struggled in recent years as a global oversupply and thin trading margins have squeezed their core commodity trading operations, including those of Bunge, Archer Daniels, Cargill Inc [CARG.UL] and Louis Dreyfus Co [AKIRAU.UL].
Shares of Bunge, which has a market cap of $9.79 billion, closed up 11 percent at $77.56 on Friday.
ADM said it does not comment on “rumors or speculation”, while Bunge was not immediately available for comment.
Reporting by John Benny in Bengaluru; Editing by Maju Samuel