BG/ADM: Soybean Crushing and Grain Handling Markets Raise Antitrust Questions

Event Driven Takeaways

  • An acquisition of Bunge by ADM would likely face DOJ demands for divestitures, particularly in the areas of soybean crushing and grain handling. Outside opposition could include growers, agricultural organizations, trade associations, food manufacturers, and consumer packaged goods manufacturers.
  • For a Bunge/ADM deal, antitrust regulators would be expected to review soybean crushing facilities on a national level, while grain handling would be assessed more regionally, said Philippe de Lapérouse, director of the global food and agribusiness practice at HighQuest Partners.

An acquisition of Bunge by ADM would likely face DOJ demands for divestitures, particularly in the areas of soybean crushing and grain handling, where the two companies have significant market share, Event Driven has learned. Antitrust regulators would be expected to review soybean crushing facilities on a national level, while grain handling would be assessed more regionally, said Philippe de Lapérouse, director of the global food and agribusiness practice at HighQuest Partners. The geographic reach for soybean crushing facilities is