July 15, 2024

Bunge and Viterra Offer Concessions to Secure EU Approval for $34 Billion Merger 🌍

U.S. grains merchant Bunge and Glencore-backed Viterra have proposed asset divestments in two EU countries to gain antitrust approval for their $34 billion merger, according to sources. This move aims to address concerns from the European Commission, which extended its decision deadline to August 1.

The companies, seeking to better compete with industry giants Archer-Daniels-Midland and Cargill, initially hoped for unconditional EU clearance but faced specific European market issues raised by regulators. Bunge confirmed the offer of concessions and expressed confidence that they address the Commission’s concerns.

The European Commission will now gather feedback from competitors and customers before deciding on the concessions or potentially launching a four-month investigation if serious concerns remain. The merger also faces scrutiny from North American, South American, and Chinese regulators.

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