China approves Bunge-Viterra merger

Approval by China’s State Administration for Market Regulation sets the stage for completion of the deal, which was first announced in 2023, the 16 June report said.

US-based Bunge said it now expected the transaction to close “on or around 2 July”.

China was the last regulatory approval Bunge needed to finalise the deal after gaining conditional approvals from regulators in Canada, the European Union (EU) and other markets, World Grain wrote.

“Achieving this regulatory milestone is a significant step forward and clears the way for closing of the transaction,” Bunge CEO Greg Heckman was quoted as saying.

“This approval underscores the strategic rationale behind bringing Bunge and Viterra together.”

Swiss commodity trading giant Glencore PLC, which has owned Netherlands-based Viterra since 2012, also confirmed “that all regulatory closing conditions have been satisfied for the merger of Viterra with Bunge and the transaction will close in early July”.

Under the deal, first announced in June 2023 and since approved by both companies’ boards, Viterra shareholders would receive about 65.6M shares of Bunge stock, valued at about US$6.2bn, and approximately US$2bn in cash, with Bunge also assuming US$9.8bn of Viterra’s debt.

Although Bunge and Viterra initially said they expected the transaction to close in mid-2024, pending customary closing conditions and approvals by Bunge shareholders and regulators, delays in securing regulatory clearance from around the globe had pushed back that timeline.

The merger would create a global crop trading and processing company closer in scale to ADM and Cargill while strengthening Bunge’s grain handling and oilseeds processing businesses, World Grain wrote.

Viterra operates a network of agricultural storage, processing and transport assets in 39 countries.

Missouri-based Bunge is a leading soyabean processor and supplier of oils and fats, operating approximately 300 facilities in more than 40 countries.