The head of Bunge says the company is ready to integrate Viterra into its business, while awaiting final approval from authorities in China.
The combination of the two multi-national agribusinesses cleared a major hurdle last month when the Canadian government gave it a green light, with a list of conditions that included the sale of some older grain elevators in Manitoba and Saskatchewan.
“Teams at both companies have put in countless hours of planning to ensure a smooth integration, so that our customers at both ends of the value chain, both farmers and consumers, see good continuity of service, and we expect to close the transaction soon,” said Bunge CEO Greg Heckman, speaking to analysts on the company’s 2024 year-end earnings call on Feb. 5.
Asked about whether the Trump administration’s new tariffs on China could slow down the approval, he said Bunge is engaged in constructive conversations with Chinese regulators.
“We continue to respond to the questions and work through the process, and we feel we’re getting to the later stages,” said Heckman. “One thing, with our global footprint, as well as Viterra with their global footprint, we both had very good relationships with the China market, with our counterparties in China, with the regulatory authorities. These are decade long relationships, and it’s very important to be able to connect that important demand in China with the farmers, and that’s what we do.”
He suggested the combination with Viterra will help Bunge navigate clouds on the horizon when it comes to tariffs and uncertain renewable fuel policies in the U.S.
“We definitely are in an environment with less visibility than normal, with the trade disruptions and some of the uncertainty around U.S. biofuels,” said Heckman.
He noted Bunge is in the final stages of divesting assets in Europe, as required by anti-trust regulators in approving the Viterra deal. There’s been no official mention of where the companies are at on selling the six Viterra and Bunge elevators, as required by the Canadian government.
The Bunge-Viterra marriage was originally announced in 2023, with both sides aiming to close the deal by mid-2024.
The agreement values Viterra, which was formed in 2007 when the Saskatchewan Wheat Pool bought Agricore United, at approximately US$8.2 billion.
Glencore, which has owned 50 per cent of Viterra since 2012, is set to receive $1 billion in cash and 15 per cent of the combined company after it closes. The Canada Pension Plan Investment Board, which holds a 40 per cent stake in Viterra, would receive a 12 per cent position after the merger, as well as $800 million in cash, while the B.C. Investment Management Corp would hold a 3 per cent stake.
