The deal will create a global crop trading and processing giant closer in scale to the two companies' chief rivals, ADM and Cargill.
Bunge Global SA’s $8.2 billion takeover of Glencore Plc-backed Viterra was green-lit by China, removing the last major hurdle to the deal’s conclusion.
The transaction, which was announced roughly two years ago, received approval by Chinese antitrust authorities, according to an emailed statement from Bunge. The deal is expected to be concluded on or around July 2, it said.
That is a much-needed win for Bunge as it navigates a broader industry decline in profits. Viterra’s vast network of storage facilities, port terminals and vessels would significantly boost its ability to source wheat, corn, and soybeans globally, giving it the firepower to compete with larger rivals like Cargill Inc. and Chicago-based Archer-Daniels-Midland Co.
“This approval underscores the strategic rationale behind bringing Bunge and Viterra together to create a premier global agribusiness company,”
Bunge Chief Executive Officer Greg Heckman said in the statement.
The company’s stock rose as much as 8.6% in New York, extending an earlier rally sparked by Trump administration’s plan to boost US biofuel quotas.
Bunge, which has its corporate headquarters in St. Louis, Missouri, had initially planned to close the deal by mid-2024. Trade tensions between the US and China contributed to some of the delay. The company has already received key approvals in the European Union, India and Canada, where there were concerns about the impact on competition.
Argentina has yet to weigh in, but antitrust laws in the South American nation allow for the deal to be completed, with any remedial action potentially being required later.
Bunge is the B in the so-called ABCD quartet of storied agricultural commodity trading firms that dominate crop markets.
Source: Bloomberg
