October 16, 2009
Brazil's Moinho Pacifico ends acquisition talks with Bunge
Brazil's largest wheat milling group, Moinho Pacifico, Thursday (October 15) confirmed that talks had ended for it to be acquired by trading company Bunge Ltd.
Talks saw a price difference of around 10 percent, said Moinho Pacifico owner Lawrence Pih in a telephone interview. "I cannot say whether talks will restart again in the future," he added.
Although Pih refused to comment on the offer made by Bunge, he said the market value of his company is around US$250 million.
Moinho Pacifico has the capacity to crush 900,000 tonnes of wheat in Santos port.
The company is currently turning its attention away from mergers and acquisitions and is now looking to double its storage capacity to 200,000 tonnes, said Pih. Moinho Pacifico will invest 80 million Brazilian reals (US$47 million) in the storage expansion.
