Bunge, Viterra will merge to form $34 billion agri-trading powerhouse

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U.S. grains merchant Bunge and Glencore -backed Viterra are merging to create an agricultural trading giant worth about $34 billion including debt, the companies said on Tuesday, in a deal that will likely draw close regulatory scrutiny.

-backed Viterra are merging to create an agricultural trading giant worth about $34 billion including debt, the companies said on Tuesday, in a deal that will likely draw close regulatory scrutiny.and Cargill , valuing Bunge and Viterra at about $17 billion each. Bunge shareholders, however, will own about 70% of the combined company, because Bunge will pay for a significant chunk of the deal with cash.Under the deal, Viterra shareholders will get about 65.

The deal also expands Bunge's physical grain storage and handling capacity in major wheat exporter Australia, where the company currently operates just two grain elevators and a port terminal in the western part of the country. Viterra has 55 storage sites in South Australia and western Victoria and six bulk grain export terminals.

Heckman oversaw a portfolio review that led Bunge to scale back or sell underperforming operations such as South American sugar and Mexican wheat milling, and invest in its core edible oils business. The company reported record earnings last year after a string of quarterly losses in 2018. Heckman previously led Gavilon from 2008 to 2015.

 

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