Bunge merges with Viterra Ltd in US$8.2B deal expanding into agribusiness

USA – Bunge Global SA, a provider of dairy alternatives, has announced the successful closing of its previously announced merger with Viterra Limited marking the creation of a premier global agribusiness solutions company for food, feed and fuel.

With Bunge’s and Viterra’s highly complementary asset footprints, the combined company will be positioned to connect farmers in the world’s largest production regions to areas with the fastest-growing consumption. 

Additionally, the combination is expected to benefit from significant incremental network synergies across joint commercial opportunities, vertical integration efficiencies, and improved logistics optimization and trading optionality from a larger and broader network.

The combined company expects to experience relatively stable cash flows from its larger, more diversified footprint. The improvement in the business risk and credit profile of the combined company is expected to drive capital structure efficiencies and cost of capital benefits.

Greg Heckman, Bunge’s Chief Executive Officer said: “Together, we’ve formed a stronger organization with enhanced capabilities and expertise to meet the evolving needs of our customers, maximize value for our stakeholders and fulfill our shared purpose to connect farmers to consumers to deliver food, feed and fuel to the world. Now, we begin the exciting work of bringing our teams and operations together, uniting our strengths to realize the full potential of this combination.”

The merger brings together two of the world’s leading crop trading and processing firms, positioning the new entity as a formidable competitor to industry giants such as Archer Daniels Midland (ADM) and Cargill.

The combined company will significantly expand its reach in grain handling and oilseed processing, thereby enhancing its ability to serve a global food chain that is increasingly under pressure from climate volatility, geopolitical risks, and shifting trade flows.

Rotterdam-based Viterra, majority-owned by Switzerland’s Glencore PLC since 2012, confirmed that “all regulatory closing conditions have been satisfied,” signaling readiness for the transaction to proceed in early July.

Glencore’s long-term strategic involvement in agriculture has undergone a steady shift, and this merger marks a significant transition in its portfolio.

Before the approval, delays in securing regulatory clearance had pushed back the original mid-2024 timeline. In a February earnings call, Bunge’s Heckman noted that the company was actively preparing for closure, including asset divestments required in Europe and ongoing discussions with Chinese regulators.

“Teams of both companies have put in countless hours of planning to ensure smooth integration so that our customers at both ends of the value chain, farmers and consumers, see good continuity of service,” he said.

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