PE Deals

Bunge to merge with Viterra to create giant agriculture business

With the deal's closing, Viterra owners Glencore, Canada Pension Plan Investment Board and British Columbia Investment Management Corp will become shareholders of Bunge.

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  • Under the terms of the agreement, Viterra shareholders would receive about 65.6 million shares of Bunge stock, with a value of about $6.2 billion, and about $2 billion in cash
  • As part of the deal, Bunge will assume $9.8 billion of Viterra debt
  • The merger is expected to close in mid-2024

Bunge, a St. Louis, Missouri-based oilseed processor and producer of specialty plant-based oils and fats, has agreed to merge with Viterra, a Rotterdam, Netherlands-based agriculture network, in a stock and cash transaction.

Under the terms of the agreement, Viterra shareholders would receive about 65.6 million shares of Bunge stock, with an aggregate value of about $6.2 billion, and about $2 billion in cash. This represents a consideration mix of 75 percent Bunge stock and 25 percent cash. As part of the deal, Bunge will assume $9.8 billion of Viterra debt.

The merger is expected to close in mid-2024.

With the deal’s closing, Viterra owners Glencore, Canada Pension Plan Investment Board and British Columbia Investment Management Corp will become shareholders of Bunge. Glencore and CPP Investments will each be able to nominate two Bunge board directors.

On the deal, David Mattiske, Viterra’s CEO, said in a statement, “Viterra and Bunge are two leading agriculture businesses. In combining our highly complementary origination, processing and distribution networks, we are better positioned to meet the increasing demand for the food, feed and fuel products we offer. 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.”

Following the closing, the combined business will be led by Greg Heckman, Bunge’s CEO, and John Neppl, Bunge’s CFO. Viterra’s Mattiske will join Bunge as co-COO.

BofA Securities is acting as financial advisor and Latham & Watkins is acting as legal counsel to Bunge.