Bunge-Viterra Merger Secures China’s Approval, Reshaping Global Grain Trade

China’s market regulator has given conditional approval to the $34 billion merger between Bunge Global SA, a major US agribusiness, and Viterra, a Glencore-backed grain handler.

This decision, confirmed by Bunge and official Chinese sources, marks the final regulatory step needed for the deal to close, which is expected around July 2, 2025.

The merger will create one of the world’s largest crop trading and processing companies, rivaling established giants like Archer-Daniels-Midland and Cargill.

The Chinese regulator raised concerns that the combined company’s increased market share could reduce competition in China’s imported soybean, barley, and rapeseed markets.

To address these concerns, the regulator imposed several conditions. Bunge and Viterra must report quarterly sales volumes to Chinese customers within 30 days after each quarter ends.

They are also required to maintain a timely, stable, reliable, and sufficient supply of soybeans, rapeseed, and other agricultural products, even during global crop shortages.

Bunge–Viterra Merger Tightens Market Grip

This merger comes after conditional approvals from Canada, the European Union, and other regions. The deal’s scale is significant: Bunge and Viterra together reported nearly $115 billion in global revenue in 2023.

Bunge alone operates in more than 40 countries and employs over 23,000 people. Viterra shareholders will receive about $6.2 billion in Bunge stock and $2 billion in cash, while Bunge will assume $9.8 billion of Viterra’s debt.

Industry data shows that just seven companies now control roughly half of the world’s grain and oilseed flows. The merger will further concentrate market power, especially in major exporting countries.

For example, the combined company could control nearly a quarter of Brazil’s corn exports and more than a fifth of its soy exports. In the US, Bunge will hold about 26% of soy processing capacity, while in Argentina, the merged group could control up to 40% of oilseed processing.

Farmers and trade groups have voiced concerns that fewer buyers for grain could mean less competition and lower prices at the farm gate. The merger also consolidates key infrastructure, such as grain silos and export terminals, particularly in Canada and South America.

China’s conditions reflect its focus on food security and supply stability, as it relies heavily on imported grains for its livestock and food industries. By demanding transparency and stable supply terms, China aims to protect its market from potential disruptions or price manipulation.

This merger signals a new era of consolidation in global agribusiness, raising important questions about competition, supply chain resilience, and the balance of power in the world’s food markets.