Credit: BUNGE and VITERRA
Bunge Global SA completed its takeover of Glencore PLC-backed Viterra, a move that will help the combined businesses better compete with larger rivals like Cargill Inc. and Archer-Daniels-Midland Co. as the crop-trading sector faces a downturn in profits.
First announced about two years ago, Bunge had initially sought to close the deal by mid-2024, but was held up as it awaited antitrust approvals from various regions. The transaction now is closed, weeks after receiving crucial support in China.
Bunge, the world’s biggest oilseed processor and the B in the quartet of agricultural powerhouses known as the ABCDs, has been pressured as ample world harvests weigh on commodities prices, while US President Donald Trump’s trade disputes threaten demand.
Viterra’s vast network of storage facilities, port terminals and vessels should broaden Bunge’s trading opportunities. The terms of the merger announced in 2023 includes Viterra shareholders receiving about 65.5 million shares of Bunge stock valued at around $6.2 billion along with about $2 billion in cash.
NAFB news service
Comments