A $201 million deal for Bunge Ltd to take control of Canadian grain handler CWB is set to shake up wheat sales in Manitoba and Saskatchewan but may not help the head of the agribusiness firm in his drive to boost profits.
The transaction was announced on Wednesday as Bunge Chief Executive Soren Schroder, 53, faces pressure to improve earnings after leading the world’s largest oilseed processor for nearly two years. Since he became CEO in June 2013, the company’s stock price has advanced 23 percent, lagging gains of nearly 50 percent for rival Archer Daniels Midland Co.
Privately held commodity trader Cargill Inc has set the bar high for Bunge’s upcoming earnings, reporting last week that profits for the quarter ended Feb. 28 rose 33 percent on the year.