Global grain trader Viterra is in talks to merge with U.S. rival Bunge Ltd (BG.N), a person familiar with the matter said, in a potential mega deal that would reshape the top tier of global grains merchants.
There is no certainty that Viterra, part-owned by Switzerland-based mining and trading giant Glencore (GLEN.L), will be able to reach an agreement on the terms, the source said, requesting anonymity as these discussions are confidential.
The deal structure is being discussed by both parties, sources said.
Any deal would be closely scrutinized by regulators as trade in staples such as wheat, corn and soybeans is already concentrated among Bunge and three other large players, raising global concerns about food security.
Bunge last year was the largest corn and soy exporter from Brazil, the world’s top source of the staple crops for making animal feed and biofuels, according to data from shipping agent Cargonave. Viterra was the third largest corn exporter and No. 7 soybean shipper.
A merger with Viterra would also lift Bunge, with 2022 revenues of $67.2 billion, closer to its nearest publicly traded agribusiness rival Archer-Daniels-Midland Co, which registered sales of nearly $102 billion last year.
To read the entire report click here.