Bunge North America sells stake in corn-based ethanol plant to Ergon
Missouri-based Bunge North America Inc. has sold its stake in a Mississippi ethanol plant. Bunge North America is a division of New York-based food processing corporation Bunge Ltd., Reuters said in a report.
St. Louis Business Journal in a separate report said privately-held petroleum refiner Ergon Inc. has purchased Bunge North America's remaining interest in Ergon BioFuels LLC. Ergon BioFuels is said to have began as a joint venture between Ergon and Bunge North America in 2007.
Financial terms of the deal were not disclosed. Ergon also did not say what percentage of the venture Bunge North America owned, Reuters wrote. St. Louis Business Journal said that after the deal, Ergon will own 100% of Ergon BioFuels.
Ergon BioFuels is a 54-million-gallon per year ethanol plant located in Vicksburg, Mississippi. It is the only facility that produced corn-based ethanol in the state, Reuters said.
Ergon BioFuels has been idle since December 2012 after the worst US drought in 50 years decimated corn supplies. With the deal for the Mississippi plant, Bunge North America's sole holdings in the US biofuel industry is now a minority stake in a facility in Council Bluffs, Iowa, the report said.