Bunge and Viterra sign merger agreement to create global agribusiness
TORONTO –
U.S. firm Bunge Ltd. has signed a deal to merge with Viterra Ltd., which is owned by Glencore, the Canada Pension Plan Investment Board and B.C. Investment Management Corp.
The firms mentioned Tuesday the deal create a worldwide agribusiness firm effectively positioned to satisfy the calls for of complicated markets and higher serve farmers and prospects.
“The combination of Bunge and Viterra significantly accelerates Bunge’s strategy, building on our fundamental purpose to connect farmers to consumers to deliver essential food, feed and fuel to the world,” Bunge chief govt Greg Heckman mentioned in a press release.
“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 benefiting farmers and end-customers.”
Under the phrases of the settlement, Viterra’s shareholders will obtain 65.6 million Bunge shares, valued at a complete of about US$6.2 billion, and about US$2.0 billion in money. Bunge may also assume US$9.8 billion of Viterra debt.
Viterra shareholders will personal 30 per cent of the mixed firm on a completely diluted foundation when the deal closes and about 33 per cent after completion of a deliberate US$2-billion share repurchase plan by Bunge.
The merger is predicted to shut in the course of 2024, topic to customary closing situations, together with regulatory approvals and approval by Bunge shareholders.
The mixed firm can be led by Heckman and Bunge chief monetary officer John Neppl, whereas Viterra chief govt David Mattiske will grow to be co-chief working officer.
The board of the mixed firm is predicted to incorporate eight Bunge nominated administrators and 4 nominated by Viterra shareholders after the deal is accomplished.
Glencore purchased Viterra and its substantial Canadian operations in 2012. It later offered a 40 per cent stake within the firm to CPP Investments and a virtually 10 per cent stake to B.C. Investment Management in 2016.
CPP Investments mentioned Tuesday it expects to obtain a few 12 per cent stake within the mixed firm and US$800 million in money in trade for its curiosity in Viterra.
This report by The Canadian Press was first revealed June 13, 2023.
