ADM makes takeover approach for grain trader Bunge: source

Chicago

Top US grain merchant Archer Daniels Midland Co has proposed a takeover of Bunge Ltd, according to a person familiar with the approach, which could set up a bidding war with Swiss-based rival Glencore plc.

Large grain traders that make money by buying, selling, storing and shipping crops have struggled in recent years with global oversupplies. Thin margins have squeezed core commodity trading operations, including those of ADM, Bunge, Cargill Inc and Louis Dreyfus Co, which together are known as the "ABCDs" and dominate the industry.

Consolidatio…