The world's top oil seed processor Bunge is in talks to buy a strategic stake in sugar firm GMR Industries Ltd to gain entry into sugar making, a newspaper reported on Wednesday citing an unnamed source.
The deal envisages Bunge picking up a 'substantial stake' in GMR Industries, with the latter retaining manufacturing operations, The Times of India quoted the source as saying.
"I cannot comment. It's still premature to talk about it now. I'd say it's better to talk about it after a week," a GMR Industries' spokesman told Reuters.
Bunge is looking at sugar companies with ethanol manufacturing capabilities, the paper quoted Adiraj Sarin, managing director of the oilseed major as saying. "We are holding talks with several people. Talks have not been conclusive yet for me to comment," Sarin was quoted as saying in the report.
Bunge is also in talks with south India-based Rajshree Sugars & Chemicals Ltd , although the latter has said there are no plans for stake sale to Bunge, Times of India reported.
Rajshree and Bunge could not be reached for comments immediately.