The $34 billion merger between U.S. grains merchant Bunge and Glencore-backed Viterra is on track for conditional approval from the European Union, according to a source with direct knowledge of the matter. The deal, announced a year ago, aims to create a global agricultural trading giant capable of competing with market leaders like Archer-Daniels-Midland and Cargill.
The EU had initially raised concerns about the merger’s potential impact on competition. To address these concerns, Bunge and Viterra offered to sell Viterra’s oilseed crush and refining plants in Hungary and Poland. However, they will now refine these remedies based on feedback from market participants. The European Commission is expected to make a final decision on the deal by August 1st.
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While the deal appears to be gaining momentum in Europe, it faces other regulatory hurdles and opposition from farm groups in Canada. The deal has already been approved in Brazil, indicating its potential for global expansion.
If approved, the merger will create one of the world’s largest agricultural trading companies, solidifying its position in the global food supply chain. However, the deal’s success ultimately hinges on navigating the complex regulatory landscape and addressing concerns raised by various stakeholders.