Grain trader Viterra is negotiating a merger with its American rival Bunge. Any deal would be closely scrutinized by regulators as trade in staples such as wheat, corn and soybeans is already concentrated among Bunge and three other large players, raising global concerns about food security.
Global grain trader Viterra is in talks to merge with U.S. rival Bunge in a potential mega deal that would reshape the top tier of global grains merchants, Reuters reported. There is no certainty that Viterra, part-owned by Switzerland-based mining and trading giant Glencore, will be able to reach an agreement on the terms, the news agency’s source said, requesting anonymity as these discussions are confidential. The deal structure is being discussed by both parties.
Given that trade in staples such as wheat, corn and soybeans is already dominated by Bunge and three other major players, a possible merger between the two giants would be closely scrutinized by regulators. Bunge last year was the largest corn and soy exporter from Brazil, the world’s top source of the staple crops for making animal feed and biofuels, according to data from shipping agent Cargonave. Viterra was the third largest corn exporter and No. 7 soybean shipper. Cartelization in the staple food sector around the world is raising concerns about food security.
