2023-06-13 14:23:40 ET
Bunge ( NYSE: BG ) +2.4% in Tuesday's trading following news it will combine with prominent agribusiness and grain handler Viterra in a deal valued at ~$18B including debt, but the deal could face antitrust scrutiny in Argentina , the world's largest exporter of soy products.
The combined company could end up with 40% of oilseeds processing capacity in Argentina if a previously agreed deal to rescue bankrupt soy supplier Vicentin SAIC goes through, according to Bloomberg calculations.
Bunge ( BG ) and Viterra currently each own 12% of Argentina's oilseeds processing capacity, but if the $1.3B restructuring deal to rescue Vicentin combined with a local cooperative succeeds, the market share would rise to 40%.
Bunge ( BG ) CEO Greg Heckman did not comment on any possible divestments the company could make to win approval of the deal, only saying Bunge will update investors throughout the process.
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Bunge deal for Viterra could face Argentina antitrust scrutiny