Bunge and Viterra's $34 Billion Merger Set for Conditional EU Approval
Source: The DairyNews
The proposed $34 billion merger between US grains merchant Bunge and Glencore-backed Viterra is poised to receive conditional antitrust approval from the European Union, according to a source familiar with the matter.
This development comes as the companies strive to form one of the world's largest agricultural trading firms, aiming to enhance their competitive stance against industry giants such as Archer-Daniels-Midland and Cargill.
Earlier this month, in an effort to address competition concerns raised by the European Commission, Bunge and Viterra proposed the divestiture of Viterra's oilseed crushing and refining operations in Hungary and Poland. These concessions are set to be fine-tuned in response to feedback from market stakeholders, as the firms seek to secure the Commission's endorsement.
The European Commission, which is expected to make a final decision on the merger by August 1, has refrained from commenting on the proceedings. Similarly, representatives from Bunge have also declined to comment.
While the merger has already received approval in Brazil, it continues to face regulatory challenges and scrutiny from farm groups in Canada. The potential approval by the EU would mark a significant step forward in the global consolidation of the agricultural sector, as reported by Bloomberg.
Earlier this month, in an effort to address competition concerns raised by the European Commission, Bunge and Viterra proposed the divestiture of Viterra's oilseed crushing and refining operations in Hungary and Poland. These concessions are set to be fine-tuned in response to feedback from market stakeholders, as the firms seek to secure the Commission's endorsement.
The European Commission, which is expected to make a final decision on the merger by August 1, has refrained from commenting on the proceedings. Similarly, representatives from Bunge have also declined to comment.
While the merger has already received approval in Brazil, it continues to face regulatory challenges and scrutiny from farm groups in Canada. The potential approval by the EU would mark a significant step forward in the global consolidation of the agricultural sector, as reported by Bloomberg.
