Cargill bid to buy Continental Grain
CARGILL, the worlds biggest grain-trading company, has announced it intends to buy the grain business of its long-time rival Continental Grain.
The deal is likely to come under the eyes of regulators in the USA and Europe.
Minneapolis-based Cargill and New York-based Continental Grain have been the top two grain exporters from the USA for many years.
The terms of the deal were not announced.
Continental has 65 facilities in the USA ranging from grain elevators to storage units, and 21 elsewhere. Cargill has about 400 facilities worldwide.
The deal was interpreted by analysts as inevitable in the current restructuring and consolidation taking place in the industry. Vertical integration in the grain industry was forcing groups such as Continental Cargill and Archer-Daniels Midland to consider acquisitions, a move to niche activities or sell out, they said.
Genetic engineering was also driving consolidations in the farm sector. The technology currently requires big investment in the short-term to reap good and profitability in the long-term.
- The Times 11/11/98 page 26 (Business Roundup)
- Financial Times 11/11/98 page 19 (Comment and Analysis), page 20 (Lex), page 24