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INVESTMENTS IN AFFILIATES
 6 Months Ended
Jun. 30, 2012
INVESTMENTS IN AFFILIATES  
INVESTMENTS IN AFFILIATES

7.     INVESTMENTS IN AFFILIATES

 

In June 2012, Bunge entered into a joint venture agreement for the construction and operation of a corn wet mill in Argentina.  Bunge has a 50% interest in this joint venture for $14 million.  Bunge accounts for this equity method investment in its sugar and bioenergy segment.  Also during the six months ended June 30, 2012, Bunge made contributions of $18 million and $15 million to its North American biofuels and Paraguay oilseed processing facility joint ventures, respectively.

 

In May 2012, Bunge completed the acquisition of an additional 63.5% voting interest in a North American wheat mill and bakery dry mix operations (see Note 3) in which it previously had a 31.5% interest, and which it reported as an equity method investment in its milling products segment. Upon completion of the transaction, Bunge began to consolidate this entity in its consolidated financial statements.  Upon assuming control of this entity, Bunge recognized a non-cash gain of $36 million to adjust its previously existing investment to fair value.

 

In April 2012, Bunge sold its 28.06% interest in The Solae Company (Solae) to E.I. du Pont de Nemours and Company for $448 million in cash exclusive of a special cash dividend of $35 million. Bunge recognized a pre-tax gain of $85 million in its agribusiness segment related to this transaction.

 

In January 2012, Bunge completed the acquisition in its agribusiness segment of a 35% interest in PT Bumiraya Investindo, an Indonesian palm plantation company, for $43 million which is reported as an equity method investment.