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Report: ADM-Bunge merger talks in 'advanced' stage

A deal between Illinois-based agricultural giant Archer Daniels Midland Co. and New York-based grain company Bunge Ltd. could arrive in the coming days, Bloomberg News reported Feb. 5, citing people familiar with the matter.

Talks between the companies are in an "advanced" stage, Bloomberg said, though its sources noted that the ongoing discussions are still tenuous. Moreover, Bloomberg's sources noted that other bidders may still be interested in Bunge, which received an informal offer from Swiss mining company Glencore Plc in 2017. Discussions between the two, which Bunge denied, may have focused on a North American partnership rather than a whole-company deal, according to comments made to Reuters at the time.

Glencore has a standstill agreement with Bunge, set to expire in early 2018.

According to the Feb. 5 Bloomberg report, a merger between ADM and Bunge — two of the four globally dominant agricultural companies — could face obstacles with both domestic and international regulators. Both ADM and Bunge purchase crops across the globe and supply international food giants such as Nestlé SA and Kraft Heinz.

ADM is scheduled to announce full-year earnings Feb. 6.

ADM and Glencore both declined to comment. Bunge did not immediately respond to S&P Global Market Intelligence's requests for comment.