Viterra merger with Bunge would create $25-billion rival to biggest agricultural players

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A merger between Viterra Inc. and Bunge Ltd. would create one of world\u0027s largest agricultural palyers capable of rivalling Cargill. Read on.

For most of its existence — since its formation in Amsterdam more than two centuries ago — Bunge was primarily a grain merchant. Its expansion to the Americas saw it become the B in the storied ABCD quartet of trading houses that dominated agricultural markets. The other members are ADM, Cargill and Louis-Dreyfus Co.

From 2014 to 2018, the stock of St. Louis, Mo.-based Bunge slumped about 35 per cent. After a wrong-way bet on soybean prices resulted in a surprise quarterly loss in 2018, activist investors at D.E. Shaw & Co. and Continental Grain Co. helped oust then chief executive Soren Schroder.Article content But instead of selling the trader, Heckman put Bunge back in the game: Its market value has gained about 80 per cent and the company is now sitting on a pile of cash.Article content

“We’ve got the dry powder, we’ve got the firepower to do all those things,” he said in February. “We’ve got the firepower to do a bigger deal if it makes sense, but things have got to make sense.”

 

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