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UPDATE ON GRAIN MERCHANTS BUNGE AND VITERRA MERGER
Jun. 9, 2023
Reuters reports:
NEW YORK - U.S. grains merchant Bunge Ltd (BG.N) is putting the final touches on a deal to merge with Glencore Plc (GLEN.L)-backed peer Viterra and create an agricultural trading giant worth more than $30 billion, including debt, people familiar with the matter said on Thursday.
The deal, whose terms have not been previously reported, would come as Russia's war in Ukraine has tested the security of supply in global food markets. Its potential impact would be examined closely by antitrust regulators.
Bunge, whose market value is about $14 billion and carries debt net of cash of about $2.7 billion, will pay for most of the deal with stock but will also use cash and has lined up debt financing from banks, the sources said. Bunge's management team, led by Chief Executive Greg Heckman, would oversee the combined company, the sources added.
Privately held Viterra's shareholders, which beyond Glencore include the Canada Pension Plan Investment Board and British Columbia Investment Management Corp, may sign off on the deal as early as this weekend if the negotiations conclude successfully, the sources said.
While the deal is on track to be announced next week, there is always a possibility it may collapse at the last minute, the sources cautioned, requesting anonymity because the matter is confidential. The deal's final value may vary based on the movement of Bunge's shares by the time the agreement gets signed, according to the sources.
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