Mon Sep 09 16:09:34 UTC 2024: ## Bunge’s $8.2 Billion Viterra Acquisition Nears Completion
**Toronto, Canada -** Bunge Global SA, a major US agribusiness, is inching closer to finalizing its $8.2 billion acquisition of Viterra, the Glencore Plc-backed grain handler. The deal, initially slated for August, has been delayed but is now expected to close in the coming months, according to S&P Global Ratings.
The key factor in this progress is Bunge’s offer to replace $1.95 billion in debt previously issued by Viterra. This move, along with Bunge’s recent divestiture of Viterra’s oilseeds business in Hungary and Poland to address competition concerns in Europe, signals a growing confidence in the deal’s success.
While regulatory approvals are still pending, particularly in Canada where both companies have significant operations, S&P has raised Bunge’s outlook to positive, indicating a potential increase in the company’s ratings.
Despite a recent downturn in commodity prices impacting Viterra’s income, the deal is expected to create a $25 billion behemoth, capable of competing with industry giants like Cargill Inc. and Archer-Daniels-Midland Co.
While the Canadian antitrust watchdog has raised concerns about the deal’s potential anti-competitive effects, S&P believes that the combined operations in Canada do not have significant geographic overlap, suggesting that material divestitures may not be necessary.
The acquisition of Viterra represents a significant move for Bunge, adding to its already substantial presence in the global agricultural market. It remains to be seen how the new entity will navigate the volatile agricultural landscape and whether it can successfully compete against the established giants of the industry.
First Piper 