CHICAGO (Reuters) – U.S. grain trader Bunge and Canadian grain trading company Viterra, backed by Glencore, are merging to create an agricultural trading giant worth around $34 billion (31.50 billion euros), the companies announced on Tuesday.
The deal, which brings Bunge closer to its main rivals Archer-Daniels-Midland and Cargill, is likely to come under scrutiny from regulators.
Viterra shareholders will receive approximately 65.6 million Bunge shares, worth approximately $6.2 billion, and approximately $2 billion in cash. They will own 30% of the combined company after the deal closes, scheduled for mid-2024, and around 33% after the buyout plan is completed.
Bunge will also assume $9.8 billion of Viterra’s debt, according to the release.
Bunge’s management team, led by chief executive Greg Heckman who took over the company in 2019 when it was itself a takeover target, will oversee the combined entity.
(Reporting Karl Plume in Chicago, Anirban Sen in New York, Arunima Kumar and Mrinalika Roy in Bangalore; Gaëlle Sheehan, editing by Kate Entringer)
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