Report: Agribusiness giants in merger talks

ROTTERDAM, THE NETHERLANDS — Agribusiness giants Viterra and Bunge Ltd. are engaged in merger discussions, in accordance with a Bloomberg report. The businesses didn’t reply to inquiries from Sosland Publishing Co. looking for remark.

Rotterdam-based Viterra, part-owned by Switzerland-based Glencore and previously referred to as Glencore Agriculture, operates a community of agricultural storage, processing and transport belongings in 37 international locations. Bunge, based mostly in St. Louis, is a world chief in oilseed processing and a number one provider of specialty plant-based oils and fat, working roughly 300 amenities in additional than 40 international locations.

This isn’t the primary time that merger rumors concerning the corporations have surfaced. In 2017, Glencore made a takeover approach for Bunge that finally failed. A yr later, The Wall Avenue Journal reported that ADM approached Bunge a few potential takeover bid, suggesting {that a} bidding struggle between ADM and Glencore might ensue, however Bunge, which on the time was combating sagging earnings and thought of weak, finally selected to stay an impartial firm.

A number of months later, Bunge hired Gregory Heckman as its chief executive officer and through the previous 4 years the corporate’s monetary efficiency has rebounded considerably. The corporate, which in 2017 was valued at $11 billion, has an estimated worth of $14 billion at present.

Upon information of the merger talks, Bunge’s inventory worth rose sharply on Could 25 from $88.95 per share to $94.49 earlier than settling at $93.61 on the finish of the day.

Talking to Bloomberg, an nameless supply mentioned there was no certainty that Viterra, which grew to become a part of Glencore in 2012, will be capable to attain an settlement on the phrases of the deal.

Viterra reported its most profitable yr ever in 2022 with a report EBITDA of $2.65 billion, noting report manufacturing in its essential export areas among the many causes for its robust efficiency. Viterra lately acquired one other US-based grain firm, Gavilon, for its grain origination and storage and meals components enterprise.