Tuesday, June 13, 2023

"Bunge to merge with Viterra to form $18 billion agriculture trader"

Although not nearly as large as  Cargill you can be sure that this tie-up has raised some concerns at the "Grain merchant to the world."

From Reuters via Yahoo News, June 13:

U.S. grains merchant Bunge and Glencore-backed Viterra on Tuesday announced an $18 billion deal to merge, creating one of the world's largest agriculture trading firms.

The deal brings Bunge closer in global scale to leading rivals Archer-Daniels-Midland and Cargill and will be examined closely by antitrust regulators.

Bunge is already the world's largest oilseed processor and analysts said it and Viterra's crushing businesses could face regulatory scrutiny in Canada and Argentina.

Bunge last year was the largest corn and soybean exporter from Brazil, the world's top source of the staple crops for making animal feed and biofuels, according to data from shipping agent Cargonave. Viterra was the third-largest corn exporter and No. 7 soybean shipper.

Combined, the companies accounted for about 23.7% of Brazil corn exports in 2022 and 20.9% of Brazil soybean exports, Cargonave data showed.

In the United States, Viterra's business of buying and selling grain expanded via its purchase of Gavilon last year. The merger would enhance Bunge's grain exporting and oilseed processing businesses in the world's No. 2 corn and soy exporter, where it has a smaller presence than ADM and Cargill....


We have so many posts on both Viterra and Bunge (along with Grain Corp+AWB, Gavilon and the rest of gang) that it is easier to simply link to search blog' results.

This one has always amused me. From 2017 referring back:

Early in the current decade we were pitching the idea that George Soros should use his position in Gavilon to acquire Bunge:

August 12, 2011
At What Price Does George Soros Find Bunge Attractive? (BG)

No, that's not a reference to the Brazilian girlfriend who's suing him for $50 mil., it's a ref. to Mr. Soros' love affair with all things ag.

We'll have more next week. BG at $61.11, down 24 cents....

 Gavilon was purchased by Viterra in 2022.