Oct 25, 2010
Corn Products International will spend 900 million dollars to buy National Starch.
The arrangements for financing this deal are being made by three of the biggest banks in the country: JP Morgan, Bank of America and Citigroup. The banks will split the juicy fees among them. And Corn Products, which took on big debts to pull off the deal, will try to squeeze Corn Products and National Starch workers to pay the interest, fees and principal on the loan.
The first squeeze will come as the new company tries to cut many of its 10,000 workers and close many of its 37 factories.
Mergers, floated by loans, are only another form of speculation. The workers didn’t take out the loan – it’s not up to them to pay it off!