Viterra, Bunge Merger Set
TORONTO - Jun 13/23 - SNS -- The marger between Viterra and Bunge is expected to be finalized mby the middle of 2024 subject to satisfaction of customary closing conditions, including receipt of regulatory approvals and approval by Bunge shareholders.
Glencore plc, the Canada Pension Plan Investment Board and British Columbia Investment Management Corporation, the shareholders of Viterra Limited, concluded the agreement with Bunge Limited to merge Bunge and Viterra in a cash and stock transaction.
Under the terms of the agreement, Glencore will receive approximately $3.1 billion in Bunge stock and $1.0 billion in cash for its 50% stake in Viterra resulting in Glencore then holding 15% in the combined group.
Glencore has agreed to not sell any stock in Bunge for a period of 12 months following the completion of the merger, and thereafter to only sell Bunge shares in orderly sales. Glencore will review periodically its strategy in respect of the shareholding.
The gross assets of Viterra on December 31, 2022 were $23.5 billion, and for the 2022 calendar year generated revenue of $53.9 billion, EBITDA of $2.6 billion and profit before tax of $1.4 billion. The implied valuation of Viterra under the merger is $8.1 billion.
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