ADM and Bunge advance discussions, and ADM says it could reach an agreement to purchase Bunge as soon as this week.
Archer Daniels Midland, or ADM, proposed a takeover of Bunge last month. Reuters points out large grain traders that make money by buying, selling, storing and shipping commodity crops have struggled with global oversupplies and thin margins.
ADM and Bunge declined to comment on the talks. However, anonymous sources say an agreement could be reached this week.
The potential agreement would continue the round of farm sector consolidation, with completed mergers of DowDupont, ChemChina and Syngenta and the pending merger of Bayer and Monsanto.
Reuters reports a deal between ADM and Bungee would face stiff regulatory scrutiny and likely opposition from United States farmers who fear the move could hurt grain prices. Bunge had a market value of about $11 billion on Friday, while ADM was valued at $23 billion.