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U.S. Agribusiness Bunge To Buy Canada’s Viterra For $8.2 Billion

Baystreet - Tue Jun 13, 2023
U.S. agribusiness Bunge (BG) is buying Viterra, Canada’s largest grain handling business, for $8.2 billion U.S. in stock and cash.

Bunge is purchasing Viterra from its parent company Glencore (GLEN), a Swiss-based commodity trading and mining firm.

Viterra shareholders will eventually own about 30% of the combined business after the deal is completed.

About 75% of the purchase price will be financed with Bunge stock, and the other 25%, or $2 billion U.S., will be financed with cash.

The deal has been approved by the boards of both Bunge and Viterra.

Bunge will assume $9.8 billion U.S. of Viterra’s debt and plans to repurchase $2 billion U.S. of its own stock.

Once finalized, the deal will enable Bunge to better compete with the world’s biggest agriculture businesses such as Cargill and Archer-Daniels-Midland (ADM).

Glencore’s stock rose 4% on news of the Viterra sale. Bunge’s stock declined 3%.

Provided Content: Content provided by Baystreet. The Globe and Mail was not involved, and material was not reviewed prior to publication.

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