Bunge has agreed to acquire Viterra, in which Glencore has a 49.99% stake, for US$8.2 billion. Under the terms of the deal announced on Tuesday, Viterra will acquire approximately 65.6 million shares worth $6.2 billion and $2 billion in cash. Whether the transaction goes through will be subject to regulatory approval.

Bunge and Viterra play a vital role as key partners to farmers around the world, purchasing crops and then supplying them to food companies and various other customers around the world. Both companies have a diverse portfolio of processing facilities that convert oilseeds and grains into a range of products such as vegetable oil, fuel, livestock feed and more.

With a history spanning more than two centuries, Bunge has established itself as a major player in the global grain trade alongside ADM and Cargill based in the United States and Louis Dreyfus based in Europe. Following an unexpected quarterly loss in 2018 caused by failed speculation on the price of soybeans, Greg Heckman took over the leadership of Bunge, implementing cost-cutting measures, shedding underperforming businesses and prioritizing risk management. The company also benefited from market volatility due to the conflict in Ukraine, while an increase in demand for low-carbon fuels further boosted its profitability.

Bunge employs approximately 23,000 people worldwide in more than 40 countries. Viterra, on the other hand, employs approximately 17,500 people in 27 countries. Together, the two companies operate more than 300 plants worldwide. Following the announcement, Swiss mining and trading company Glencore saw its shares rise 5.3% in London. Similarly, Bunge shares were up 2.5% in New York.