Glencore explores possible takeover of Bunge in agricultural commodity trading

Glencore said on Tuesday its agricultural unit has made an informal approach to commodities trader Bunge about a “possible consensual business combination,” the company said in a statement.

The company did not say more about a potential offer that its Glencore Agriculture Ltd unit made to Bunge. Glencore also said “discussions may or may not materialise and there is no certainty that any transaction will occur.”

Shares of Bunge surged earlier on Tuesday after the Wall Street Journal reported that commodities trader Glencore has approached the US agribusiness group about a takeover.

It was unclear where discussions between the companies stand and there may not be any deal.

Bunge declined to comment.

The report comes amid heightened expectations of consolidation among large grain traders as a global oversupply and thin trading margins have squeezed the core grain trading operations of Bunge and rivals Archer Daniels Midland, Cargill and Louis Dreyfus.