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Investing.com -- The proposed $34 billion merger between Bunge (NYSE:BG) Global and Glencore-backed Viterra is being delayed due to ongoing trade tensions between the United States and China, according to Bloomberg, citing people familiar with the situation. The merger, which was first announced in 2023, is currently in the final stages of regulatory approval.
In separate emailed responses to Reuters, Bunge and Viterra expressed their gratitude for the ongoing dialogue with Chinese government officials throughout the regulatory review process. The completion of the merger would establish a global crop trading and processing giant, nearing the scale of industry leaders Archer-Daniels-Midland and Cargill. However, obtaining regulatory approval from China remains one of the last obstacles before the deal can be finalized.
Bunge has already secured most of the necessary global approvals for the merger, including those from the European Union and Canada. The merger was initially expected to close in mid-2024. However, there is growing concern among Bunge executives and advisers that the political discord between the United States and China could cause further delays.
Bunge CEO Greg Heckman has made several trips to China to hold discussions with authorities, as the merger has raised concerns among Chinese regulators. They worry that the merger could lead to increased industry concentration and potentially affect Beijing’s food security interests. The regulators are currently conducting a thorough compliance review due to the significance of the deal.
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