Bunge acquires Tate & Lyle's sugar trading business

Issue date: 07.07.08

Bunge has entered into an agreement to acquire the international sugar trading and marketing division of Tate & Lyle.

The company believes that this acquisition will strengthen its position in the sugar value chain by expanding its international trading and marketing activities and creating a stronger network for sugar origination in Brazil, Thailand and other geographies.

As a first step, the operations and employees of Tate & Lyle's international sugar trading business will transfer to Bunge. The working capital in the business will remain with, and be collected and paid by, Tate & Lyle through March 31, 2009, at which point it will be assumed by Bunge upon final completion of the transaction.

Archie Gwathmey, co-CEO of Bunge Global Agribusiness, said: "Bunge's strategy is to expand into complementary value chains, and sugar is an essential one. In the past two years we have established a sugar marketing and trading operation and purchased a sugarcane mill in Brazil. Strengthening our global team is a natural next step."