Viterra to merge with Bunge

business solutions company, well placed to meet increased global demand as well as the ongoing challenge of providing sustainable, traceable food and feed products to customers around the world. This would be underpinned by a rigorous focus on creating value for all stakeholders.”

Note 1: Glencore to receive 32.8 million shares valued at approximately $3.1 billion as per the last closing price of $93.79 on Monday, 12 June 2023.

Note 2: before the commencement of Bunge’s announced $2 billion share buyback programme.

Background

Glencore plc, the Canada Pension Plan Investment Board and British Columbia Investment Management Corporation, the shareholders of Viterra Limited, have concluded an agreement with Bunge Limited to merge Bunge and Viterra in a cash and stock transaction to create a premier diversified global agribusiness solutions company, as announced by Bunge today.

Under the terms of the agreement, Glencore will receive approximately $3.1 billion in Bunge stock and $1.0 billion in cash for its c. 50% stake in Viterra1 resulting in Glencore then holding c. 15% in the combined group2. The transaction would result in a larger, more diversified business, with significant synergy and re-rating potential. Glencore has agreed to not sell any stock in Bunge for a period of 12 months following the completion of the merger, and thereafter to only sell Bunge shares in orderly sales. Glencore will review periodically its strategy in respect of the shareholding.

The merger, subject to satisfaction of customary closing conditions, including receipt of regulatory approvals and approval by Bunge shareholders, is expected to close in mid-2024.

Gary Nagle, CEO, Glencore, commented:

“The merger of Viterra with Bunge is expected to realise significant value for Glencore. Our investment in the agriculture sector dates back over 40 years and has grown from being a small grains trader to being part of a world leading, fully integrated global agriculture network.

The combined group would be a premier pure-play agri-

Viterra is Glencore’s legacy vertically integrated business focused on the global agricultural product value chain. In 2016 the Canada Pension Plan Investment Board and British Columbia Investment Management Corporation acquired interests in the business, reducing Glencore’s stake to c. 50%. The gross assets of Viterra on 31 December 2022 were $23.5 billion, and for the year to 31 December 2022 it generated revenue of $53.9 billion, EBITDA of $2.6 billion and profit before tax of $1.4 billion. The implied valuation of Viterra under the merger is $8.1 billion. The Viterra senior management team comprises CEO David Mattiske, CFO Peter Mouthaan, and the Executive Directors for Global Markets Francis Mardon and Bas van Hoorn.

All numbers are based on IFRS and references to $ are to US dollars. Glencore plans to apply the cash proceeds to repay existing borrowings.

Hexagon’s Agriculture division, a reference in the development of a digital solution for the agricultural industry, will launch a new solution aimed at production management in Agrishow 2023.

The trade show, considered the greatest agribusiness fair in Latin America, took place from May 1 to May 5, in Ribeirão Preto/SP. One of the company’s highlights in the event was the new HxGN AgrOn Control Room | Mobile. The app is a module of HxGN AgrOn Control Room, which is a real-time monitoring software for everything that happens in the cultivation.

The solution has emerged from a demand from managers and directors of agricultural companies, who needed more agility to follow up the operations and solve potential problems that could arise. The app has functions, as personalised notifications, which allow the manager to set up the receipt of new notices when, for instance, some incident occurs in the field. “The production occurs 24 hours a day.

The manager may be at home, for instance, and, if necessary, check and monitor an area with a critical problem, even if he/she is out of the workplace. Mobility comes in the sense of facilitating the access to the product, since nowadays the mobile phone is practically an extension of our body, as we take it everywhere and do everything with it”, explains Alexandre Alencar, Research and Development Director of Hexagon’s Agriculture division.

Another technology that was highlighted during the fair is HxGN AgrOn ECU ISOBUS, which builds an interface with sensors and actuators in agricultural supplies. The differentiator of the solution is the communication in ISOBUS standards, allowing compatibility with devices of different brands and models.

“The eased customisation and integration of the product is a paramount point for manufacturers, who must adapt to characteristics of several implements and displays, which is one of the greatest challenges of agricultural automation these days”, explains Bernardo de Castro, president of Hexagon’s Agriculture division.

Hexagon also taok to the fair a solution aimed at monitoring the application of vinasse per aspersion, for sugar cane handling. Some time ago, vinasse has become one of the most important fertilisers for the crop, but there was no automated application for managers to have more visibility of the information, managing to correct possible discrepancies in a timely manner.

According to Rafael Borelli, Soluition Commercial Manager in the company, Hexagon saw an opportunity using HxGN

AgrOn Machine Monitoring to implement this solution. “We authorised this equipment to make available information for managers and cater for this demand, which tends to grow up even more”, he explains.

The Hexagon also exhibited other solutions, such as technologies for precision agriculture that can be embedded into agricultural machines, allowing the application of inputs at a variable rate and section cutting.

Visitors to the Hexagon booth also had an opportunity to see the different generations of displays: Ti5, Ti7 and Ti10. The most recent version, the HxGN AgrOn Ti10, has a 10.1-inch high definition (HD) screen, high-performance processors and allows working with ISOBUS, the universal protocol for standardising agricultural communication.

While the Ti10 has a high processing capacity to meet the needs of large companies, the Ti5 is an entry-level equipment, considering its ease of use, applicability in various agricultural operations and affordable investment.

Agrishow is an opportunity for companies to reach out to customers, partners, and prospects. Last year, the event has moved BRL 11.2 billion in business, and it has received 193 thousand visitors.

To Bernardo, the fair is a great technology meeting. “Agrishow has this potential. In a short period, we can present our product to hundreds of people that visit our stand, in addition to meeting customers and business partners. It is where all the industry is established, and it becomes a highly meaningful week.”

Iron Ore

Coal and Fly ash

Ferrous and non Ferrous metals

Industrial minerals: Titanium, Phosphate & Potash