Moinho Pacifico, located in Santos, is one of the largest wheat processors in Brazil. The transaction is subject to regulatory approval, Bunge said in a statement.
Bunge Brazil, a wholly owned subsidiary of Bunge Ltd, said on Aug. 27 it has agreed to acquire Brazilian wheat processor Moinho Pacifico, Reuters reported.
Bunge said the deal will allow it to increase its market share for wheat flour and some prepared mixes for the bread-making industry. Financial details were not disclosed.
Bunge tried to buy Moinho Pacifico from its owner Lawrence Pih in 2009 but they did not agree on a price.
Buying Moinho Pacifico will allow Bunge to dominate Brazil’s largest consumer market in the state of Sao Paulo, Brazil, which accounts for 28% of wheat sales in Brazil.