Bunge and Viterra in merger negotiations. A source familiar with the situation said global grain trader Viterra is in talks to merge with U.S. rival Bunge Ltd. (BG.N) in a megadeal that would restructure the top tier of global grains merchants.
The secret source claimed Viterra, part-owned by Switzerland-based mining and trading giant Glencore (GLEN.L), may not be able to agree on conditions.
Sources say both parties are discussing agreement structuring.
As Bunge and three other large firms dominate trade in commodities like wheat, corn, and soybeans, heightening global food security worries, regulators would heavily investigate any acquisition.
Cargonave said Bunge was Brazil’s leading grain and soy exporter last year. Viterra exported the third-most corn and seventh-most soybeans.
Bunge’s 2022 revenues of $67.2 billion would be closer to Archer-Daniels-Midland Co.’s roughly $102 billion.
On Thursday, Bunge shares reached a three-week high of $93.61, valuing the business at $14 billion. Glencore dipped 0.7%.
As Russia’s invasion of Ukraine delayed shipments and crop prices rose, global commodities merchants built substantial cash reserves.
Agribusinesses profit from drought, conflict, and other supply interruptions by buying, selling, storing, and processing crops.
Viterra would become a prominent global grains trader with access to U.S. export facilities after a combination with Bunge.
Last year, Viterra bought U.S.-based Gavilon from Japan’s Marubeni for $1.1 billion, giving it much more physical grain processing assets in the U.S. and making it Brazil’s third-largest soybean exporter, where Bunge already has a major presence.
Viterra, formerly Glencore Agriculture, made news in 2017 when it failed to acquire Bunge, an $11 billion global grain trading powerhouse.
In May 2017, Bunge rejected Glencore’s preliminary offer to discuss “a possible consensual business combination.”
Glencore publicly stated it was investigating Viterra options to unlock more value.
Glencore, Viterra, and Bunge declined to comment. Bloomberg originally reported Viterra-Bunge discussions.
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