Stock Market News

Bunge, Viterra to merge in $18 billion deal

2023.06.13 06:45


© Reuters. FILE PHOTO: Bunge Ltd logo is seen displayed in this illustration taken, April 10, 2023. REUTERS/Dado Ruvic/Illustration

CHICAGO (Reuters) – U.S. grains merchant Bunge (NYSE:) and Glencore-backed Viterra on Tuesday announced an $18 billion deal including debt to merge, creating one of the world’s largest agriculture trading firms.

The deal brings Bunge closer in global scale to leading rivals Archer-Daniels-Midland and Cargill and will be examined closely by antitrust regulators.

Shares of Bunge fell 5% to $93.79 in premarket trading.

Viterra shareholders will receive about 65.6 million shares of Bunge stock, carrying a value of about $6.2 billion, and about $2.0 billion in cash. Bunge will also assume $9.8 billion of Viterra’s debt.

Bunge is already the world’s largest oilseed processor and analysts said it and Viterra’s crushing businesses could face regulatory scrutiny in Canada and Argentina.

Bunge last year was the largest corn and soybean exporter from Brazil, the world’s top source of the staple crops for making animal feed and biofuels, according to data from shipping agent Cargonave. Viterra was the third-largest corn exporter and No. 7 soybean shipper.

Combined, the companies accounted for about 23.7% of Brazil corn exports in 2022 and 20.9% of Brazil soybean exports, Cargonave data showed.

In the United States, Viterra’s business of buying and selling grain expanded via its purchase of Gavilon last year. The merger would enhance Bunge’s grain exporting and oilseed processing businesses in the world’s No. 2 corn and soy exporter, where it has a smaller presence than ADM and Cargill.

The deal also expands Bunge’s physical grain storage and handling capacity in major wheat exporter Australia, where the company currently operates just two grain elevators and a port terminal in the western part of the country. Viterra has 55 storage sites in South Australia and western Victoria and six bulk grain export terminals.

The world’s top vegetable oils producer also entered partnerships with oil major Chevron (NYSE:) and seeds and chemicals giant Bayer (OTC:) to pursue soaring demand for renewable fuels feedstocks.

In Ukraine, the world’s top sunflower producer and largest supplier of sunflower oil, a combined Bunge-Viterra would have three oilseed processing plants across the country’s south and east, in Kharkiv, Dnipro and Mykolaiv.

Acquiring Viterra would bring Bunge’s revenue, which was $67.2 billion in 2022, more in line with that of ADM, which registered sales of nearly $102 billion last year.

In early 2017, Viterra, then known as Glencore (OTC:) Agriculture, attempted a takeover of Bunge, which was then valued at $11 billion. The attempted takeover was rebuffed.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 76,394.47 0.55%
vested-xor
Vested XOR (VXOR) $ 3,405.08 99,999.99%
ethereum
Ethereum (ETH) $ 2,900.64 7.71%
tether
Tether (USDT) $ 1.00 0.11%
solana
Solana (SOL) $ 196.96 5.02%
bnb
BNB (BNB) $ 601.28 2.21%
usd-coin
USDC (USDC) $ 0.999292 0.02%
xrp
XRP (XRP) $ 0.556952 2.93%
staked-ether
Lido Staked Ether (STETH) $ 2,901.58 7.80%
dogecoin
Dogecoin (DOGE) $ 0.192505 1.32%
cardano
Cardano (ADA) $ 0.397196 10.95%
tron
TRON (TRX) $ 0.160645 1.29%
the-open-network
Toncoin (TON) $ 4.96 4.79%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,417.63 7.38%
avalanche-2
Avalanche (AVAX) $ 27.63 4.05%
shiba-inu
Shiba Inu (SHIB) $ 0.000019 0.75%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 76,266.43 0.57%
weth
WETH (WETH) $ 2,903.03 7.66%
chainlink
Chainlink (LINK) $ 12.64 5.33%
bitcoin-cash
Bitcoin Cash (BCH) $ 385.12 2.78%
sui
Sui (SUI) $ 2.31 1.05%
polkadot
Polkadot (DOT) $ 4.16 2.24%
leo-token
LEO Token (LEO) $ 6.25 0.18%
usds
USDS (USDS) $ 0.998899 0.15%
uniswap
Uniswap (UNI) $ 9.03 3.47%
litecoin
Litecoin (LTC) $ 72.06 2.45%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,050.31 7.81%
near
NEAR Protocol (NEAR) $ 4.27 2.09%
aptos
Aptos (APT) $ 9.82 4.30%
pepe
Pepe (PEPE) $ 0.000011 14.47%
bittensor
Bittensor (TAO) $ 516.49 1.10%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.42 0.84%
internet-computer
Internet Computer (ICP) $ 7.84 1.10%
dai
Dai (DAI) $ 0.99899 0.05%
monero
Monero (XMR) $ 165.62 1.67%
stellar
Stellar (XLM) $ 0.101895 5.66%
ethereum-classic
Ethereum Classic (ETC) $ 20.24 4.92%
kaspa
Kaspa (KAS) $ 0.117046 2.03%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.04%
whitebit
WhiteBIT Coin (WBT) $ 19.66 1.60%
aave
Aave (AAVE) $ 184.05 8.06%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.348553 5.20%
blockstack
Stacks (STX) $ 1.69 0.81%
crypto-com-chain
Cronos (CRO) $ 0.093579 10.40%
okb
OKB (OKB) $ 40.20 2.25%
dogwifcoin
dogwifhat (WIF) $ 2.38 0.42%
mantle
Mantle (MNT) $ 0.697499 17.70%
first-digital-usd
First Digital USD (FDUSD) $ 0.998868 0.04%
arbitrum
Arbitrum (ARB) $ 0.584825 8.53%
filecoin
Filecoin (FIL) $ 3.79 3.52%