China approves Bunge’s $8.2bln takeover of Glencore-backed Viterra

China has approved Bunge Global’s $8.2 billion takeover of Glencore Plc-backed Viterra, clearing the last major hurdle to the deal, Bloomberg reported.

The deal, announced about two years ago, has received approval from Chinese antitrust authorities, Bunge said in an emailed statement.

It’s a much-needed win for Bunge as it helps it combat a massive squeeze on profits in the industry. Viterra’s vast network of warehouses, port terminals and ships will greatly expand its ability to ship wheat, corn and soybeans around the world, allowing it to compete with major rivals like Cargill Inc. and Chicago-based Archer-Daniels-Midland Co (ADM).

The company’s shares rose 8.6% in New York, extending an earlier rally sparked by the Trump administration’s plan to increase U.S. biofuels quotas.

Bunge, based in St. Louis, Missouri, had originally planned to complete the deal by mid-2024. The delay was partly due to trade tensions between the U.S. and China. The company has already received key approvals in the European Union and Canada, where concerns have been raised about the impact on competition.

Argentina has yet to take action, but the South American country’s antitrust laws allow the deal to be completed, though any corrective action may be required later.

Bunge is the second-largest in the so-called ABCD quartet of prominent agricultural commodity trading firms that dominate crop markets.

Tags: Viterra, Glencore, Bunge