Bunge In Talks With Glencore Regarding Viterra Grain Business: Reports

  • Bunge Ltd BG and Glencore Plc's GLNCY Viterra grains division reportedly discuss a merger.
  • There is no certainty that Viterra, part-owned by Switzerland-based mining and trading giant Glencore, will be able to reach an agreement on the terms, reported Reuters, citing a person familiar with the matter.
  • A merger offers Glencore the potential to monetize its 49.9% Viterra stake, reported Bloomberg citing JPMorgan analyst Dominic O'Kane, who values that holding at $6.1 billion.
  • JPM assumes Glencore will keep a minority stake in the combined business, which may have an equity value of around $25 billion.
  • A deal would have to be approved by antitrust authorities, as there is a significant overlap in locations such as South America and Canada, added Bloomberg.
  • Also Read: Bunge Q1 Earnings Top Expectations Amid Fluctuations In Global Supplies And Consumer Behavior
  • Price Action: BG shares are trading higher by 0.02% at $93.62 on the last check Friday.
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