Bunge Brasil, a subsidiary of global agribusiness and food company Bunge, has reportedly agreed to acquire Moinho Pacifico, a wheat processor in Brazil.
With this acquisition, Bunge would increase its share in wheat flour and other prepared mixes market.
The acquisition will allow the company to establish a strong presence in Sao Paulo, which accounts for 28% of wheat sales in Brazil, Reuters reported.
Bunge Brasil originally planned to acquire Moinho Pacifico in 2009. However, the plans were abandoned due to disagreement on the price.
The financial terms of the transaction are not disclosed. The deal is subject to regulatory approval.
Claimed to be one of the largest wheat processors in Brazil, Moinho Pacifico is involved in wheat processing and corn milling.
Bunge Brasil buys and processes grains including soybean, wheat, corn, cotton, rice, and other commodities.
The company manufactures foodstuffs including oil, margarine, flour and baking mix, sauces, and spices among others; and produces sugar, ethanol, and biodiesel.
