Market News & Headlines >> Bunge, Viterra Announce Merger

U.S. grains trader Bunge and Glencore-backed Viterra are merging to create an agricultural trading giant worth about $34 billion including debt, the companies announced on Tuesday.

The deal comes in the wake of several weeks of talk that a merger was in the works and figures to draw close scrutiny from antitrust regulators in the U.S. and other countries.

The deal values Bunge and Viterra at about $17 billion each, but Bunge shareholders   will own about 70% of the company, because Bunge will pay for a significant chunk of the deal with cash. Bunge will also assume $9.8 billion of Viterra's debt, according to a joint statement from the companies.

Under the deal, Viterra shareholders will get about 65.6 million shares of Bunge stock, carrying a value of about $6.2 billion, and about $2 billion in cash. Viterra shareholders will own 30% of the combined company following the deal's expected close in mid-2024.

The deal is unprecedented in size in the global agriculture sector. It comes after Bunge posted record adjusted profits in 2022, benefiting from tight global grain supplies due Russia’s invasion of Ukraine.

Bunge shares rose $2.38 or 2.5% in Tuesday trading.