|Day's Range||0.00 - 0.00|
|52 Week Range|
|PE Ratio (TTM)||38.66|
|Dividend & Yield||0.14 (1.83%)|
|1y Target Est||N/A|
Shares of Bunge Ltd scaled to a 22-month peak on Wednesday after merger overtures by Glencore Plc's agriculture unit whetted investors' appetite for consolidation in the commodities sector. Grain trading veterans like Bunge, Archer Daniels Midland Co and Cargill Inc [CARG.UL], which already have a sizable U.S. presence, are aiming up the supply chain with specialty, higher-margin products. Meanwhile, foreign players like Glencore and China's Cofco Group [CNCOF.UL] are eager to gain a foothold in the United States - the world's top agricultural products exporter - and other key production areas in South America, where Bunge dominates.
Bunge (BG) said it is "not engaged in business combination discussions" with Glencore (GLNCY) or its agribusiness unit. Bunge added that it "is committed to continuing to execute its global agri-foods strategy and pursuing opportunities for driving growth and value creation," according to a statement issued Tuesday. Glencore, responding to media speculation, trumpeted its desire to buy or combine with Bunge earlier Tuesday and confirmed that it "made an informal approach to Bunge Limited regarding a possible consensual business combination." It also said that "there is no certainty that any transaction will occur." Glencore shares are up 0.5% today.
For commodity companies like BHP Billiton (BHP) and Glencore (GLNCY), the EV-to-EBITDA multiple is the preferred valuation metric.