Bunge and Viterra merge into USD 34 bln agriculture trading giant

A US-based agricultural commodities trader Bunge and a Canadian company Viterra, backed by Glencore, entered into a definitive agreement to merge in a stock and cash transaction, the company said in a statement made on Tuesday.

Under the terms of the agreement, which was unanimously approved by the Boards of Directors of Bunge and Viterra, Viterra shareholders would receive approximately 65.6 million shares of Bunge stock, with an aggregate value of approximately USD 6.2 billion, and approximately USD 2.0 billion in cash, representing a consideration mix of approximately 75% Bunge stock and 25% cash. As part of the transaction, Bunge will assume USD 9.8 billion of Viterra debt, which is associated with approximately USD 9.0 billion of highly liquid Readily Marketable Inventories.

The merger is expected to close in mid-2024, subject to satisfaction of customary closing conditions, including receipt of regulatory approvals and approval by Bunge shareholders.

The merged company is estimated at USD 34 billion, including the debts.

After the deal, Glencore and several Canadian pension funds would own ~30% of Bunge.