Global grain traders Bunge and Viterra agree to merge

Global agri-business Bunge has entered an agreement to merge with Viterra, formerly known as Glencore Agriculture.

The merger is due to close in mid-2024 to create a combined business that will compete with major global grain and oilseed merchants such as ADM and Cargill.

However, the merger is likely to create some concerns around competition and could face checks by regulators in several countries.

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Bunge has about 23,000 employees in more than 40 countries, while Viterra, which has been part of the wider Glencore business, has about 17,500 employees.

The merger would result in a business worth about $34bn (£27bn) including debt, according to Reuters.

Greg Heckman, Bunge’s chief executive, said: “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.

“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.”

Viterra’s chief executive, David Mattiske, said it would be better positioned to meet the increasing demand for its commodity products by combining with Bunge.

“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,” he added.