Archer Daniels Midland (NYSE:ADM) declined to discuss a potential deal with (NYSE:BG) during today's earnings conference call but said it wants to push deeper into South America and Asia to capitalize on expanding agricultural production and growing populations.
“We don’t want to just invest to be big, but to plug holes in our value chain,” CEO Juan Luciano said.
Bunge has a much bigger presence in South America, than ADM; about half of Bunge’s soybean production capacity is in South America vs. just 15% for ADM, according to J.P. Morgan analysts, and Bunge’s crop storage capacity there outstrips ADM's by more than 10x.
Luciano also said ADM has closed trading offices and revamped some processing operations to address inefficiency and waste, which he expects will save $100M this year.
ADM closed today's trade +3.4%.