Grupo Minsa Flour
As part of the transaction, Bunge will take management control of four mills in Mexico and two mills in the United States.

ST. LOUIS, MISSOURI, U.S. — Bunge North America, the North American operating arm of Bunge Ld., announced on Aug. 30 it has reached an agreement to invest in Grupo Minsa S.A.B. de C.V., corn flour producer, securing a controlling financial interest in the company. The transaction is expected to close in early 2017, subject to the authorization of the Comisión Federal de Competencia Económica (Mexican Antitrust Commission), the successful delisting of Grupo Minsa from the Mexican Stock Exchange, and other customary closing conditions.

Bunge CEO Soren Schroder
Soren Schroder, CEO, Bunge Ltd.

As part of the transaction, Bunge will take management control of four mills in Mexico and two mills in the United States. The facilities have a combined annual processing capacity of 700,000 tonnes and produce a broad portfolio of branded corn flours and pre-mixes for tortillas and other goods, Bunge said.

“This investment enhances Bunge’s position in milling, an important contributor to our global Food & Ingredients business,” said Soren Schroder, chief executive officer (CEO), Bunge Ltd. “The operation is aligned with our core capabilities and increases the share of value-added business in our overall portfolio.”

Bunge entered the U.S. corn masa market in early 2014 with the purchase of its first mill in Worthington, Indiana, U.S. With this investment, Bunge enters the corn masa market in Mexico.

Bunge North America CEO Todd Bastean
Todd Bastean, CEO, Bunge North America.

“This is a natural extension of our successful milling platforms in the U.S. and Mexico that will enable us to expand in a product line that is growing due to demographic and economic trends,” said Todd Bastean, CEO, Bunge North America. “With more facilities, products, and capabilities, we’ll be able to provide a broader offering and enhanced services to our growing customer base, with more logistical and operational flexibility.”

The deal with Grupo Minsa is the latest in a series of transactions for Bunge, which has been partnering with companies across the world as it seeks to grow its business. On Aug. 5, Bunge announced the intention to enter into an agreement with Cargill under which Bunge will acquire two oilseed processing plants and businesses from Cargill that are located in the Netherlands and France.

In June, Bunge announced a joint venture with Wilmar, a crush operation in Vietnam, to further expand into Asia. In July, Bunge announced a joint venture expansion with Amaggi in São Paulo, Brazil, to operate on the route known as the Northern Corridor via the Tapajós waterway. Also in Brazil, Bunge acquired Moinho Pacifico, a Brazilian wheat flour miller, in August 2015.

Bunge was advised by Rothschild.