Viterra Limited and Bunge Limited will merge under a $34 million deal to create a premier global agribusiness solutions company.
Glencore, who is a primary shareholder of Viterra, will receive $3.1 billion in Bunge stock and $1 billion in cash. The merger is expected to close in mid-2024.
Glencore stands to receive 32.8 million Bunge shares.
“The merger of Viterra with Bunge is expected to realise significant value for Glencore,” Glencore chief executive officer Gary Nagle said.
“Our investment in the agriculture sector dates back over 40 years and has grown from being a small grains trader to being part of a world leading, fully integrated global agriculture network.
“The combined group would be a premier pure-play agribusiness solutions company, well placed to meet increased global demand as well as the ongoing challenge of providing sustainable, traceable food and feed products to customers around the world. This would be underpinned by a rigorous focus on creating value for all stakeholders.”
Viterra is Glencore’s legacy integrated business and us focussed on the global agricultural product value chain.
Glencore said the merger will result in a larger, more diversified business with rerating potential. Glencore has also agreed to not sell any Bunge stock for a period of 12 months following the merger’s completion in mid-2024.