Bunge and Viterra to merge, creating oilseed and grain trading powerhouse
The combining of both companies’ operations will see diversification across assets, supply chains, geographies, and crops, and will create an entity to rival Cargill and ADM.
The merger is expected to close in mid-2024 but has yet to be scrutinized by the regulators and requires approval by Bunge shareholders.
Rotterdam, Netherlands-based Viterra, which is part owned by Swiss mining and commodity company, Glencore, is a top-five global trader in sourcing oilseeds, such as soy, rapeseed and sunflower, and grains, including wheat, corn, and barley, which are complemented by sugar, pulses, and cotton.
Missouri, US-headquartered Bunge has almost 23,000 employees working across 300 facilities located in more than 40 countries. It is the world's largest oilseed processor and is also a producer and supplier of specialty plant-based oils and fats.
Stock and cash deal
Under the terms of the agreement, which was unanimously approved by the boards of directors of both Bunge and Viterra, Viterra shareholders would receive around 65.6 million shares of Bunge stock, which are valued at around US$6.2bn, and about US$2bn in cash.
As part of the deal, Bunge will assume US$9.8bn of Viterra debt, and it also announced a US$2bn share buyback plan.
Viterra shareholders will own 30% of the merged businesses when the deal is finalized, and about 33% after completion of Bunge’s share repurchase scheme.
Leadership
On finalization of the deal, Greg Heckman, Bunge’s chief executive, and John Neppl, Bunge’s chief financial officer, will lead the amalgamated businesses. Viterra CEO, David Mattiske, will join the Bunge executive leadership team in the role of co-chief operating officer.
The combined company will operate as Bunge, with operational headquarters in St Louis, Missouri. Its board of directors is expected to be comprised of eight Bunge nominated representatives and four representatives nominated by Viterra shareholders following completion of the transaction.
