Ag Industry, Uncategorized

Bunge and Viterra announce merger plans

International grain giants Bunge and Viterra, which both have major Australian presences, have announced plans to merge

Two of the world’s biggest grain companies – Bunge and Viterra – have announced plans to merge in a multi-billion dollar deal.

Both companies are originally North American – Viterra was founded in Canada and Bunge’s headquarters are in USA – although both have a significant foothold in the Australian market.

Bunge has built an export terminal in the Western Australian port town of Bunbury and has two other grain receival facilities in the state, in addition to participating in South Australian and east coast markets, plus a head office in Melbourne.

Viterra previously purchased ABB Grain in 2009 and runs several port facilities in South Australia plus receival sites in both SA and Victoria.

The Bunge name will remain as part of the deal, which has already been unanimously agreed by both companies’ boards.

The companies say the deal will “create an innovative global agribusiness company well positioned to meet the demands of increasingly complex markets and better serve farmers and end-customers.”

Viterra CEO David Mattiske, who will become co-chief operating officer of Bunge once the merger is finalised, says bringing the two businesses together will lead to overall benefits.

“In combining our highly complementary origination, processing and distribution networks, we are better positioned to meet the increasing demand for the food, feed and fuel products we offer,” he says.

“Together, we will play a leading role in the future of the agriculture industry, developing fully traceable, sustainable supply chains and moving towards carbon-neutral operations, while creating a strong growth platform for our combined business.”

Bunge CEO Greg Heckman, who will remain in the role, describes the two companies as being highly complementary.

“Our highly complementary asset footprints will create a network that connects the world’s largest production regions to areas of fastest growing consumption, enhancing the geographical balance and adaptability of our global value chains and benefitting farmers and end-customers,” he says.

“We have great respect for the team at Viterra, which shares our commitment to excellence, and believe this combination will offer great opportunities for employees of both companies.”

The deal, which has attracted major international attention, is said to be worth more than $30 billion and will involve Bunge shareholders owning approximately 70 per cent of the new company and Viterra shareholders having the remaining 30 per cent.

The deal is still subject to regulatory and shareholder approval and the companies hope it will be finalised in mid-2024.

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