LONDON (ShareCast) - Tate & Lyle has agreed to sell its international sugar trading operations to food processor and fertilizer maker Bunge for an undisclosed amount in a move to reduce its exposure to volatile commodity markets.

The group said the deal, which is conditional on anti-trust approval in a small number of countries, will allow it to concentrate on its core sugar refining operations.

As a first stage, the operations and the employees of the international sugar trading business will transfer to Bunge.

The working capital in the business will remain with, and be collected and paid by, Tate & Lyle through to 31 March 2009 at which point it will be assumed by Bunge upon final completion of the transaction.

“Our international sugar trading operation is a good business,” said chief executive Iain Ferguson.

“However, the recent sale of our sugar businesses in the Americas and the restrictions on exports from our EU cane sugar refineries, which were implemented as part of the EU Sugar Regime reforms, have reduced the value of international sugar trading to Tate & Lyle,” he added.

• News Channel