Bunge Inks Merger Deal With Glencore's Viterra - What's On The Cards?
Portfolio Pulse from Lekha Gupta
Bunge Ltd (NYSE: BG) has agreed to acquire Glencore PLC's (OTC: GLNCY) Viterra Limited in a stock and cash transaction worth $6.2 billion in shares and $2 billion in cash. Bunge will also assume $9.8 billion of Viterra debt. The deal is expected to close in mid-2024 and generate annual gross pre-tax operational synergies of around $250 million within three years of completion.
June 13, 2023 | 11:46 am
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POSITIVE IMPACT
Bunge's acquisition of Viterra is expected to generate annual gross pre-tax operational synergies of around $250 million within three years of completion. The deal is expected to be accretive to Bunge's Adjusted EPS in the first full year upon closing.
The acquisition of Viterra is expected to generate significant operational synergies for Bunge, which will positively impact its financial performance. The deal is also expected to be accretive to Bunge's Adjusted EPS in the first full year upon closing, indicating a positive short-term impact on Bunge's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Glencore's Viterra Limited will be acquired by Bunge Ltd in a stock and cash transaction. Upon deal closure, Viterra shareholders will own 30% of the combined company, on a fully diluted basis, and approximately 33% after completion of the buyback.
The acquisition of Viterra by Bunge will result in Viterra shareholders owning a significant stake in the combined company, which is expected to have a positive short-term impact on Glencore's stock price. The deal also indicates a successful exit for Glencore from its Viterra investment.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100