Posted on August, 8, 2024 at 10:21 am
The European Commission has conditionally approved US agribusiness giant Bunge's deal to acquire rival Viterra for more than £6.3 billion.
Bunge first announced its bid for the Dutch firm in June 2023 that would create a global powerhouse in the food commodities trading sector.
Now the European Commission has approved the merger, after the companies offered a package of commitments to allay the bloc's concerns.
This includes divesting all of Viterra's oilseed businesses in Hungary and Poland, and "a number of logistical assets linked to these operations", the commission said in a statement.
EU competition chief, Margrethe Vestager said: "We had concerns that the transaction could affect the supply chains of rapeseed and sunflower seed in Central Europe, with potential ramifications across the food, feed, and biofuel industries.
"The divestiture of Viterra's entire oilseeds business in Hungary and Poland will preserve competition in these markets," she added.
Bunge, headquartered in the US, is mainly active in the processing, sale and trading of oilseed meals and oils.
The firm also sells grains and milled products, as well as unprocessed oilseeds, sugar and other agricultural products.
Viterra, headquartered in the Netherlands, trades agricultural commodities including grains, oilseeds and oilseed-based meals, and oils.
Viterra also sells other unprocessed products, such as cotton, and milled products.
Source: FarmingUK