Analysts says a merger of U.S. grains merchant Bunge Ltd. with rival Viterra would grow the combined entity’s businesses in the U.S., Brazil and Australia and may raise competition concerns in parts of Canada and Argentina, where key oilseed processing assets overlap.
Sources last week said Bunge and Viterra were in talks for a potential mega deal that would further consolidate global agriculture trading and bring Bunge closer in global scale to leading rivals ADM and Cargill.
J.P. Morgan equity research estimates the combined company’s market cap would be around $25 billion US, compared with ADM’s $38.9 billion market cap.
Bunge and Viterra each crush canola on the Canadian Prairies — including plants in close proximity in southern Manitoba — as well as in Eastern Canada.
Antitrust authorities may require some of those assets be offloaded before approving the merger.