WASHINGTON (dpa-AFX) - Bunge Limited (BG) has entered into a definitive agreement with Viterra Limited together with, certain affiliates of Glencore PLC (GLEN.L), Canada Pension Plan Investment Board and British Columbia Investment Management Corporation, to merge with Viterra in a stock and cash deal. Viterra shareholders would receive approximately 65.6 million shares of Bunge stock, with an aggregate value of approximately $6.2 billion, and approximately $2.0 billion in cash, representing a consideration mix of approximately 75% Bunge stock and 25% cash. Bunge will assume $9.8 billion of Viterra debt.
Bunge plans to repurchase $2.0 billion of Bunge's stock to enhance accretion to adjusted EPS. Viterra shareholders would own 30% of the combined company on a fully diluted basis upon the close, and approximately 33% after completion of the repurchase plan.
The merger is anticipated to close in mid-2024. Bunge expects the transaction, coupled with the associated $2.0 billion share buyback, to be accretive to adjusted EPS in the first full year post closing and continue to improve with the realization of synergies.
The combined company will be led by Greg Heckman, Bunge's CEO, and John Neppl, Bunge's CFO. Viterra CEO David Mattiske will join the Bunge Executive Leadership Team in the role of Co-Chief Operating Officer.
The combined company will operate as Bunge. Glencore and CPP Investments will each enter into a shareholder agreement with Bunge at the closing of the deal.
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