Agricultural traders Bunge and Viterra announce merger

Agricultural traders Bunge and Viterra have entered into a merger agreement. About it says in a message from the Swiss company Glencore plc.

“The result of the transaction will be a larger and more diversified business with significant synergies and revaluation potential,” the message says.

Under the agreement, Glencore will receive $3.1 billion in Bunge stock and $1 billion in cash for 50% of Viterra. In the combined company, Glencore will have 15%. The merger will be completed in mid-2024, subject to all necessary regulatory approvals and shareholder approval from Bunge.

Viterra’s post-merger valuation will be $8.1 billion, according to Glencore. According to Gary Nagle, CEO of the Swiss company, the combined group will become a leading company specializing in the development of agribusiness solutions that can meet growing global demand.

Bloomberg writesthat the merger will take place as part of a $18 billion deal, including debt. The agency notes that in 2017, Viterra, formerly Glencore Agriculture, made an attempt to take over Bunge, but it was unsuccessful.

Viterra is a Canadian grain trader acquired by Glencore in 2012. In 2016, the Pension Plan Investment Board of Canada and British Columbia Investment Management Corporation bought stakes in the company. March 30, 2023 Russian Ministry of Agriculture received notification from Viterra on the termination of export activities in Russia from July 1.

Bunge has also decided to sell its oil refining business in Russia. The buyer was the controlling shareholder of Exoil Group Karen Vanetsyan. The deal includes a sunflower processing plant in the Voronezh region. In February, at Bunge CIS LLC reported about closing the deal.