Merger decision of the American agricultural company Bunge and Viterra
US agricultural and food company Bunge has announced it will merge with Viterra, owned by Swiss-based mining and trading company Glencore, to create an agribusiness company worth about $34 billion, including debts.
Bunge said the merger of Bunge and Viterra will create an innovative global agribusiness company to meet the demands of increasingly complex markets and better serve farmers and end customers.
In the statement, it was indicated that as part of the merger agreement, Viterra shareholders will receive approximately 65.6 million Bunge shares worth approximately $6.2 billion and approximately $2 billion in cash, while Bunge will assume Viterra’s debt. of $9.8 billion.
In addition, it was stated in the statement that Viterra’s shareholders will own 30 percent of the company created after the completion of the agreement.
34 BILLION DOLLARS WILL CREATE A COMPANY
It was noted that the merger of these companies will create a $34 billion agricultural trading company.
The deal in question is expected to increase discussion of cartelization in the staple food market, which is dominated by 4 big companies, including Archer-Daniels-Midland (ADM) and Cargill.
Considering that the trade in staple foods such as wheat, rice, corn and soybeans is currently dominated by Bunge and three other major players, it is claimed that the merger between the two companies in question is expected to be closely scrutinized. by competition regulators. (AA)
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
