May 2, 2012

DuPont purchases Bunge's stake on Solae for US$440 million

After the US$6.4 billion takeover of Danisco last year, DuPont acquired Bunge Ltd's stake in their soy-based ingredients joint venture for US$440 million, its latest deal in the food sector.

The Solae joint venture, which produces soy supplement extracted from soy, was formed in 2003 with DuPont owning a 72% stake.

DuPont said in March it expected soy supplements to fuel much of the growth in its food ingredients business.

With the full ownership of Solae, pretax earnings margins of DuPont's nutrition and health business will be closer to the upper end of its long-term target of 12-14%, it said.

Agribusiness and food company Bunge said the deal to sell its minority stake in Solae will help it put capital into its "strategic, core businesses."