Bunge Agrees to Sell Oilseed Processing Business in Russia

Rhea-AI Summary

Bunge (NYSE:BG) has announced the sale of its oilseed processing business in Russia to Karen Vanetsyan, the controlling shareholder of Exoil Group. The sale includes the sunflower processing plant located in Voronezh and is subject to customary closing conditions, including regulatory approval. CEO Greg Heckman expressed confidence in the new ownership, citing Vanetsyan's extensive experience in agricultural processing. This strategic move aligns with Bunge's mission to connect farmers to consumers while enhancing its operational focus.

Positive

• Strategic divestment of non-core asset in Russia may improve operational focus.
• Sale includes sunflower processing plant, potentially optimizing resource allocation.

Negative

• Dependence on regulatory approval may delay completion of sale.
• Uncertainty regarding the financial impact of the sale on overall revenue.

ST. LOUIS--(BUSINESS WIRE)-- Bunge (NYSE:BG) today announced that it has agreed to sell its oilseed processing business in Russia to Karen Vanetsyan, the controlling shareholder of Exoil Group. The sale includes the sunflower processing plant in Voronezh. The completion of the sale is subject to customary closing conditions, including regulatory approval.

“We are grateful to the team for continuing to deliver essential food and feed in this challenging environment. With Karen Vanetsyan's more than 25 years of experience in agricultural processing, we are confident the team will continue to successfully serve customers,” said Greg Heckman, Bunge’s CEO.

About Bunge
At Bunge (NYSE: BG), our purpose is to connect farmers to consumers to deliver essential food, feed and fuel to the world. With more than two centuries of experience, unmatched global scale and deeply rooted relationships, we work to put quality food on the table, increase sustainability where we operate, strengthen global food security, and help communities prosper. As the world’s leader in oilseed processing and a leading producer and supplier of specialty plant-based oils and fats, we value our partnerships with farmers to improve the productivity and environmental efficiency of agriculture across our value chains and to bring quality products from where they’re grown to where they’re consumed. At the same time, we collaborate with our customers to create and reimagine the future of food, developing tailored and innovative solutions to meet evolving dietary needs and trends in every part of the world. Our Company is headquartered in St. Louis, Missouri, and we have almost 23,000 dedicated employees working across approximately 300 facilities located in more than 40 countries.

Website Information
We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220919005520/en/

Media Contact:

Bunge News Bureau

Bunge

636-292-3022

news@bunge.com

Investor Contact:

Ruth Ann Wisener

Bunge Limited

636-292-3014

Ruthann.wisener@bunge.com

Source: Bunge Limited

FAQ

What did Bunge announce regarding its operations in Russia?

Bunge announced the sale of its oilseed processing business in Russia, including a sunflower processing plant in Voronezh.

Who is buying Bunge's oilseed processing business in Russia?

The buyer is Karen Vanetsyan, the controlling shareholder of Exoil Group.

What are the conditions for completing the sale of Bunge's Russian operations?

The sale is subject to customary closing conditions, including regulatory approval.

What is the significance of the sale for Bunge's business strategy?

The sale represents a strategic divestment allowing Bunge to optimize its operational focus.

How might the sale of the Russian operations affect Bunge's financial performance?

There is uncertainty regarding the financial impact of the sale on overall revenue until completion.