Reuters

Top U.S. grains merchant Archer Daniels Midland Co. could reach an agreement to buy smaller rival Bunge Ltd. as early as this week, Bloomberg reported on Monday, citing unnamed sources familiar with the matter.

The potential deal comes as large grain traders that make money by buying, selling, storing and shipping commodity crops have struggled with global oversupplies. Thin margins have squeezed such trading operations, including those of ADM, Bunge, Cargill Inc and Louis Dreyfus Co, which together are known as the “ABCDs” and dominate the industry.

Reuters, citing a source, reported last month that ADM had proposed a takeover of Bunge.

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