U.S.-based Bunge has signed a deal to merge with Viterra in a stock and cash transaction.
The deal will create a global agribusiness company estimated to be worth over U.S $30 billion including debt.
The press release notes that under the terms of the agreement, which was unanimously approved by the Boards of Directors of Bunge and Viterra, Viterra shareholders would receive approximately 65.6 million shares of Bunge stock, with an aggregate value of approximately U.S .$6.2 billion, and approximately U.S. $2 billion in cash.
For Viterra shareholders that would mean a mix of approximately 75% Bunge stock and 25% cash.
As part of the transaction, Bunge will assume $9.8 billion of Viterra debt, in addition, Bunge plans to repurchase $2 billion of Bunge’s stock as soon as practically possible and no later than 18 months after transactions close.
Viterra shareholders would own 30% of the combined company on a fully diluted basis upon the close of the transaction, and approximately 33% after completion of the Repurchase Plan.
Greg Heckman, Bunge’s Chief Executive Officer says 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 benefitting farmers and end-customers."
David Mattiske, Viterra’s Chief Executive Officer says 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.
"This further enables us to offer innovative solutions and open additional pathways for our customers. We will create value for stakeholders across our network, as we build on our shared purpose to connect producers and consumers around the world. We look forward to joining with the Bunge team as we enter this next chapter, creating new opportunities for our people. The combined talent and experience of our workforce will allow us to offer a truly world-leading service across everything we do."
The merger is expected to close in mid-2024 subject to customary closing conditions, and shareholder and regulatory approvals.