Mergers and Acquisitions

Bunge, Viterra Announce Merger To Create Ag Giant Worth More Than $34 Billion

St. Louis, Mo.-based grain trader and oil seed processor Bunge announced June 13 that it has entered into a definitive agreement with Viterra, together with certain affiliates of Glencore PLC, Canada Pension Plan Investment Board and British Columbia Investment Management Corporation, to merge with Viterra in a stock and cash transaction. The merger will form a new ag trading giant worth more than $34 billion, comparable in size to global rivals Cargill and ADM.

The merger is expected to close in mid-2024, subject to satisfaction of customary closing conditions, including receipt of regulatory approvals and approval by Bunge shareholders. The deal is subject to antitrust approval. Bunge is already the world’s largest oilseed processor. In October 2022, Viterra expanded by buying the grain-distribution business of Omaha-based Gavilon for $1.125 billion.

Following the transaction’s close, the combined company will be led by Greg Heckman, Bunge’s CEO, and John Neppl, Bunge’s chief financial officer. 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. Viterra’s current headquarters in Rotterdam will be an important commercial location in the future of the combined company.

“The combination of Bunge and Viterra significantly accelerates Bunge’s strategy, building on our fundamental purpose to connect farmers to consumers to deliver essential food, feed and fuel to the world,” Heckman said. “Our highly complementary asset footprints will create a network that connects the world’s largest production regions to areas of fastest growing consumption, enhancing the geographical balance and adaptability of our global value chains and benefitting farmers and end-customers.  … Together, we will be positioned to increase our operational efficiency while innovating to address the pressing needs of food security, efficiency for end-customers, market access for farmers and sustainable food, feed and renewable fuel production.”

“Viterra and Bunge are two leading agriculture businesses,” Mattiske said. “In combining our highly complementary origination, processing and distribution networks, we are better positioned to meet the increasing demand for the food, feed and fuel products we offer. Together, we will play a leading role in the future of the agriculture industry, developing fully traceable, sustainable supply chains and moving toward carbon-neutral operations, while creating a strong growth platform for our combined business. … We look forward to joining with the Bunge team as we enter this next chapter, creating new opportunities for our people.”

The companies said the merger will “transform the combined company’s ability to promote sustainable practices in global food supply, including origination transparency, low-carbon product streams, full end-to-end traceability across major crops and origins and the acceleration of regenerative agriculture to reduce greenhouse gas emissions. … Food, feed and fuel customers will benefit from a broader product portfolio and expanded global supply options.”