Global Courant
Bunge buys Viterra in a deal worth about $18 billion to create a global agricultural giant.
Viterra shareholders will receive approximately 65.6 million shares of Bunge worth approximately $6.2 billion and approximately $2 billion in cash. Bunge assumes $9.8 billion in Viterra debt.
Bunge’s grain and soft seed processing capacity will grow while expanding origination capabilities in key regions and crops where Bunge does not have a strong presence.
“The combination of Bunge and Viterra significantly accelerates Bunge’s strategy, building on our fundamental goal of connecting farmers with consumers to deliver essential food, feed and fuel to the world,” Bunge CEO Greg Heckman said in a statement Tuesday. prepared statement.
The deal would create a scale that brings Bunge closer Archer Daniels Midland and one of the country’s largest private companies, Cargill. But the acquisition is also likely to put it in the crosshairs of US antitrust regulators
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A cornfield grows in front of an old windmill in Pacific Junction, Iowa. Bunge buys Viterra in a deal worth about $18 billion to create a global agricultural giant.
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The combined company will retain the Bunge name, headquartered in St. Louis. The Viterra headquarters in Rotterdam will serve as the commercial location.
Glencore, the Canada Pension Plan Investment Board and British Columbia Investment Management are also investing in the deal.
The combined company’s board will consist of eight Bunge directors and four representatives nominated by Viterra shareholders after the deal closes.
The transaction is expected to be completed by the middle of next year. It still needs approval from Bunge Inc. shareholders.
Bunge’s stock rose slightly on Tuesday at the opening bell.
