Bunge completes merger with Viterra to form global agribusiness giant

Published 02/07/2025, 18:22
Bunge completes merger with Viterra to form global agribusiness giant

ST. LOUIS - Bunge Global SA (NYSE:BG) announced Wednesday the completion of its previously announced merger with Viterra Limited, creating what the company describes as a premier global agribusiness solutions company. The merger brings together two significant players in the food products industry, with Bunge currently valued at $10.93 billion and generating over $51 billion in annual revenue. According to InvestingPro analysis, Bunge is currently trading below its Fair Value, suggesting potential upside for investors.

The combined entity will maintain Bunge’s leadership structure with Greg Heckman continuing as Chief Executive Officer and John Neppl as Chief Financial Officer. Viterra’s Chief Executive Officer David Mattiske has joined Bunge’s executive team as Co-Chief Operating Officer alongside Julio Garros, who previously served as Bunge’s Co-President of Agribusiness. The company’s strong leadership has helped maintain a solid financial position, with InvestingPro data showing a healthy current ratio of 2.04 and an impressive track record of maintaining dividend payments for 25 consecutive years, currently yielding 3.49%.

"Today is a defining moment for our company and our global team as we complete this transformative business combination," said Heckman in a statement released by the company.

The merger brings together complementary asset footprints that will connect farmers in major production regions to areas with growing consumption demands. The combined organization now employs approximately 37,000 people and operates in over 50 countries.

According to the company statement, the merger is expected to generate network synergies through joint commercial opportunities, vertical integration efficiencies, and improved logistics. The larger, more diversified footprint is anticipated to provide more stable cash flows and potential capital structure efficiencies.

Bunge, which has its registered office in Geneva, Switzerland and corporate headquarters in St. Louis, Missouri, stated that the combined company will offer a broad portfolio of plant-based oils, fats, and proteins while continuing to focus on grain origination, storage, distribution, and oilseed processing.

Bank of America Securities served as financial advisor to Bunge for the transaction, with Latham & Watkins LLP acting as legal counsel.

The announcement comes after regulatory approvals were secured for the merger that was previously announced by the companies.

In other recent news, Bunge Limited reported its Q1 2025 earnings, revealing an adjusted earnings per share (EPS) of $1.81, surpassing the forecasted $1.31. However, the company’s revenue of $11.64 billion fell short of the anticipated $13.11 billion, highlighting ongoing market challenges. Bunge also received approval from Chinese antitrust authorities for its $8.2 billion acquisition of Viterra, clearing the final major regulatory hurdle for the deal. The transaction is expected to close soon, according to Bunge’s CEO, Greg Heckman. Barclays analyst Benjamin Theurer maintained an Equalweight rating on Bunge, with a price target of $85, noting the company’s consistent adjusted EPS forecast for fiscal year 2025. Theurer mentioned potential improvements in the Canadian canola market and the Renewable Seed Oil segment, despite short-term challenges. Additionally, Bunge announced a partnership with Repsol for low-carbon initiatives, further diversifying its operations. These developments reflect Bunge’s strategic efforts to navigate a volatile market environment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.