June 16, 2023
Bunge and Viterra plan to merge to create a global agribusiness company to meet the demands of complex markets and better serve farmers and end-customers.
With an enhanced global network, the combined company’s increased diversification across geographies, seasonal cycles, and crops will increase optionality in managing risk and increase resiliency. Together, the complementary organizations will benefit from more diversified capabilities, greater operational flexibility across oilseed and grain supply chains and processing, greater resources, and combined employee talent to innovate and deliver for customers in every environment, creating value for all stakeholders.
“The combination of Bunge and Viterra significantly accelerates Bunge’s strategy, building on our fundamental purpose to connect farmers to consumers to deliver essential food, feed and fuel to the world. Our highly complementary asset footprints will create a network that connects the world’s largest production regions to areas of fastest growing consumption, enhancing the geographical balance and adaptability of our global value chains and benefitting farmers and end-customers,” said Greg Heckman, Bunge’s CEO.
“Together, we will be positioned to increase our operational efficiency while innovating to address the pressing needs of food security, efficiency for end-customers, market access for farmers, and sustainable food, feed and renewable fuel production,” he added.
With Bunge and Viterra’s highly complementary asset footprints, the combined company will be strongly positioned to connect the world’s largest production regions to areas with the fastest growing consumption.
The combined company complements Bunge’s existing footprint with significant grain and softseed handling capacity, while expanding origination capabilities in key regions and crops where Bunge is underrepresented. The combined company will be diversified across the key export origins, as well as major crush destinations.
“In combining our highly complementary origination, processing and distribution networks, we are better positioned to meet the increasing demand for the food, feed, and fuel products we offer. Together, we will play a leading role in the future of the agriculture industry, developing fully traceable, sustainable supply chains and moving towards carbon-neutral operations, while creating a strong growth platform for our combined business,” said David Mattiske, Viterra chief executive officer.
Increased direct origination reach will transform the combined company’s ability to promote sustainable practices in global food supply, including origination transparency, low carbon product streams, full end-to-end traceability across major crops and origins, and the acceleration of regenerative agriculture to reduce greenhouse gas emissions.
The new company will be led by Greg Heckman, Bunge’s chief executive officer, and John Neppl, Bunge’s chief financial officer. Viterra’s Mattiske will join the Bunge Executive Leadership Team as co-chief operating officer.
It will operate as Bunge, with operational headquarters in St. Louis, MO. Viterra’s current headquarters in Rotterdam will be a commercial location in the future of the combined company.
The merger is expected to close in mid-2024
You May Also Like