Grain trader Viterra is in talks to merge with Bunge

Global grain trader Viterra is in talks to merge with its American rival Bunge Ltd. A source familiar with the matter told Reuters.

There is no certainty that Viterra, which is partly owned by Swiss mining and trading giant Glencore, will be able to agree on the terms of the deal, said the source, who wished to remain anonymous because the discussions are confidential.

On Thursday, Bunge’s shares were trading at $92.89, valuing the company at about $14 billion.

Viterra, formerly known as Glencore Agriculture, made headlines in 2017 for its failed takeover of Bunge, one of the world’s grain trading giants, valued at $11 billion at the time.

In May 2017, Bunge pushed back against Glencore after the latter proposed an informal approach to discuss a “possible consensual business combination.”

As a reminder, the Russian division of grain trader Viterra (Glencore’s agricultural division), Viterra Rus, will continue to operate in Russia under a new name. Viterra’s operating business in Russia is to be transferred to local management.

Tags: Bunge, Viterra