Bunge and Viterra Complete $8.2 Billion Merger

Bunge Global SA announced on 2 July that it had successfully completed its merger with Viterra Limited, creating a combined entity in the food, feed and fuel sectors that now rivals global agribusiness giants such as Cargill and ADM in size and scope, according to Investing.com.

Bunge is currently valued at around $10.93 billion and generates annual revenue exceeding $51 billion.

The deal took more than two years to complete, with approval from Chinese regulators on 16 June marking the final hurdle after conditional approvals were secured from Canada, the European Union and other markets, according to World Grain on 3 July.

Bunge said the merged company will offer a broad range of oils, fats and plant-based proteins, while continuing to focus on grain collection, storage, distribution and oilseed processing.

According to a Bunge introductory statement on the merger, the new company will own and operate more than 300 grain storage facilities, over 40 port terminals, and more than 155 processing, refining and packaging facilities.

Viterra operates more than 300 grain and oilseed processing facilities in over 40 countries, while Bunge operates 56 oilseed crushing plants with a capacity of 57 million tonnes, 26 port terminals, 47 oil refineries and 17 grain processing facilities, according to the World Grain report.

Bunge said the merger would strengthen its already leading position as an exporter of soybeans and corn from South America, particularly as Viterra ranks among the largest exporters of these crops in Brazil.

World Grain reported that the top four agribusiness companies, known as "ABCD" (ADM, Bunge, Cargill and Louis Dreyfus), already controlled around 90% of global grain and oilseed trade before the merger, and their market share is now expected to grow further.

The merged company will be led by Greg Heckman, Bunge's Chief Executive Officer, and John Neppl, the company's Chief Financial Officer. David Mattiske, Viterra's Chief Executive Officer, will serve as Co-Chief Executive Officer of Operations alongside Julio Garros, former Co-President of Bunge's Agribusiness division.

Source: Al Mal Forum