Bunge, one of the world's top agribusiness groups, extended its acquisition spree with the purchase of a UK-based low carbon investment group, highlighting the ties between the farming and environmental sectors.

The US group, the "B" in the "ABCD" of agricultural trading giants, said it had sealed a long-speculated takeover of Climate Change Capital, a leading investor in environmental ventures, managing some $1.5bn of funds.

The acquisition, Bunge's third since November, follows a so-called "carbon crash" which saw prices of UN-backed credits plunge by more than two-thirds last year, as a wave of issuance clashed with weak demand, sapped by the impact of soft economic growth.

The downturn has left Climate Change Capital, which in September saw chief executive Shaun Mays step down to return to the US, nursing losses and sapped investor interest in the sector.

'Global reach'

However, Bunge, which has its own carbon business, signalled that the deal could herald expansion in the sector, saying it would bring "an enhanced ability to expand service offerings".

The takeover would "create an organisation with deep expertise and global reach", said Daniel Rudolph, managing director of Bunge's financial services division, which includes the carbon operations.

The comments come amid continued environmental pressure in areas including Bunge's core agribusiness sector, under scrutiny on issues such as emissions from livestock farms and the benefits, in environmental terms, of producing biofuels from different crops.

Last week, GrainCorp, the Australian grain handler, warned over the impact on Australian farmers of a carbon tax the country is introducing in July.

While agriculture itself exempt, the levy will increase costs of fertilizers and of processing, costs which "will inevitably be passed back" to farmers, placing them at a disadvantage in competing against peers without cabon levies, GrainCorp chairman Don Taylor warned.

Deal spree

For Bunge, the deal also represents a further sign of a desire by the group to extend its horizons, after it in November bought a 35% stake in Indonesia's Bumiraya Investindo to enter the palm oil production business.

The group also expanded its Indian consumer edible oils business through the purchase, sealed earlier this month, of Amrit Bansapati in a $71m deal.

The price paid for Climate Change Capital has not been revealed, although it is believed to be below $50m, and well beneath the $100m at which the investment group was valued at three years ago.

Climate Change Capital's backers have included, besides staff, fund manager Alliance Trust, the Universities Superannuation Scheme pension fund, Dutch bancassurer SNS Reaal, and Mitsui & Co, the Japanese trading company.

The other agricultural trading houses in the "ABCD" group are Archer Daniels Midland, Cargill and Louis Dreyfus.

Bunge shares eased 0.3% to $66.84 in morning deals in New York.