In a monumental deal valued at approximately $18 billion, Bunge is acquiring Viterra, creating a global agricultural behemoth. This merger will significantly expand Bunge's grain and softseed handling capacity and bolster its origination capabilities in strategically important regions and crop markets.
The agreement involves Viterra shareholders receiving about 65.6 million Bunge shares, worth roughly $6.2 billion, along with a $2 billion cash payment. Bunge will also assume Viterra's debt, which amounts to $9.8 billion.
Bunge CEO Greg Heckman emphasized the strategic importance of this merger, stating that it "significantly accelerates Bunge’s strategy, building on our fundamental purpose to connect farmers to consumers to deliver essential food, feed and fuel to the world."
This acquisition positions Bunge closer in scale to industry giants like Archer-Daniels Midland and Cargill. However, the substantial nature of this merger will likely draw scrutiny from antitrust regulators in the U.S.
The combined entity will operate under the Bunge name, headquartered in St. Louis. Viterra's current headquarters in Rotterdam will become a key commercial hub.
Key investors in the deal include Glencore, the Canada Pension Plan Investment Board, and British Columbia Investment Management. Post-merger, the board will consist of eight Bunge directors and four representatives appointed by Viterra shareholders.
The transaction is expected to finalize by mid-2024, pending approval from Bunge Inc. shareholders. Bunge's stock saw a slight uptick at the start of trading following the announcement.
