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The deal will probably be examined carefully by antitrust regulators
14 June 2023
2 minute learn
US grains service provider Bunge and Glencore-backed Viterra on Tuesday introduced an $18 billion deal to merge, creating one of many world’s largest agriculture buying and selling corporations, reported Reuters.
The deal brings Bunge nearer in world scale to main rivals Archer-Daniels-Midland and Cargill and will probably be examined carefully by antitrust regulators.
Bunge is already the world’s largest oilseed processor and analysts stated it and Viterra’s crushing companies might face regulatory scrutiny in Canada and Argentina.
Bunge final 12 months was the most important corn and soybean exporter from Brazil, the world’s high supply of the staple crops for making animal feed and biofuels, in response to information from transport agent Cargonave. Viterra was the third-largest corn exporter and No. 7 soybean shipper.
Mixed, the businesses accounted for about 23.7% of Brazil corn exports in 2022 and 20.9% of Brazil soybean exports, Cargonave information confirmed.
In the USA, Viterra’s enterprise of shopping for and promoting grain expanded through its buy of Gavilon final 12 months. The merger would improve Bunge’s grain exporting and oilseed processing companies on this planet’s No. 2 corn and soy exporter, the place it has a smaller presence than ADM and Cargill.
The deal additionally expands Bunge’s bodily grain storage and dealing with capability in main wheat exporter Australia, the place the corporate at present operates simply two grain elevators and a port terminal within the western a part of the nation. Viterra has 55 storage websites in South Australia and western Victoria and 6 bulk grain export terminals.
The world’s high vegetable oils producer additionally entered partnerships with oil main Chevron and seeds and chemical compounds large Bayer to pursue hovering demand for renewable fuels feedstocks.
In Ukraine, the world’s high sunflower producer and largest provider of sunflower oil, a mixed Bunge-Viterra would have three oilseed processing vegetation throughout the nation’s south and east, in Kharkiv, Dnipro and Mykolaiv.
Buying Viterra would carry Bunge’s income, which was $67.2 billion in 2022, extra in step with that of ADM, which registered gross sales of almost $102 billion final 12 months.
In early 2017, Viterra, then generally known as Glencore Agriculture, tried a takeover of Bunge, which was then valued at $11 billion. The tried takeover was rebuffed.
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