Bunge and Viterra Merge to Form Leading Global Agribusiness Solutions Company

June 13, 2023: Bunge and Viterra are two major agribusiness companies joining forces to create a leading global agribusiness solutions company. The merger will enable them to meet the demands of increasingly complex markets and better serve farmers and customers. By combining their resources, they will establish a diverse network across regions, crop cycles, and commodities, enhancing their ability to manage risks and adapt to various environments. The collaboration will bring together complementary capabilities, flexible supply chains, and a talented workforce, enabling them to innovate and deliver value to customers worldwide.

According to the agreement, Viterra shareholders will receive approximately 65.6 million shares of Bunge stock and $2.0 billion in cash. Bunge will also assume $9.8 billion of Viterra debt associated with highly liquid inventories. Additionally, Bunge plans to repurchase $2.0 billion of its stock to enhance earnings per share. After the completion of the transaction, Viterra shareholders will own 30% of the combined company on a fully diluted basis and approximately 33% following the share repurchase.

Greg Heckman, CEO of Bunge, highlighted that the merger aligns with their mission to connect farmers with consumers and provide essential food, feed, and fuel globally. The combined company will establish a network that connects major production regions with growing consumption areas, ensuring a balanced and adaptable global value chain. Heckman emphasized the enhanced resilience of cash flow generation, diversification of earnings, and the commitment to addressing food security, market access for farmers, and sustainable production.
David Mattiske, CEO of Viterra, emphasized the complementary nature of the two companies and their shared purpose of connecting producers and consumers worldwide. The merger will enable them to lead the agriculture industry by developing traceable and sustainable supply chains while moving toward carbon-neutral operations. The combined company will offer innovative solutions, create stakeholder value, and provide a world-leading service.

The strategic and financial benefits of the merger include establishing a global, pure-play agribusiness solutions company. The combined company will have a strong presence in major production regions and consumption markets. It will promote sustainable practices, offer farmers greater market access, and provide value-added solutions. The collaboration will enhance efficiencies, connectivity, and capabilities across value chains, fostering best practices and supporting investments in technology and sustainability. The management teams of both companies have a track record of value creation and are well-positioned to deliver significant value to shareholders.

The merger is expected to generate approximately $250 million in annual operational synergies within three years and benefit from incremental network synergies. The company’s improved business risk profile will drive capital structure efficiencies and cost-of-capital benefits. The transaction is anticipated to be accretive to Bunge’s Adjusted EPS in the first year after closing and further improve with the realization of synergies. The combined company’s credit ratings are expected to remain strong, and it is fully funded through a financing commitment provided by Sumitomo Mitsui Banking Corporation.