CHICAGO, June 13 (Reuters) – U.S. grains merchant Bunge (BG.N) and Glencore (GLEN.L)-backed Viterra are merging to create an agricultural trading giant worth about $34 billion including debt, the companies said on Tuesday, in a deal that will likely draw close regulatory scrutiny.
The deal brings the combined company closer in global scale to leading rivals Archer-Daniels-Midland (ADM.N) and Cargill (CARG.UL), valuing Bunge and Viterra at about $17 billion each. Bunge shareholders, however, will own about 70% of the combined company, because Bunge will pay for a significant chunk of the deal with cash.
Shares of Bunge fell 2.5% to $91.45 in premarket trading.
Under the deal, Viterra shareholders will get about 65.6 million shares of Bunge stock, carrying a value of about $6.2 billion, and about $2 billion in cash.
Bunge will also assume $9.8 billion of Viterra’s debt, according to a joint statement.
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Bunge is already the world’s largest oilseed processor and analysts said it and Viterra’s crushing businesses could face regulatory scrutiny in Canada and Argentina.
Last year, Bunge was the largest corn and soybean exporter from Brazil, the world’s top source of the staple crops for making animal feed and biofuels, according to data from shipping agent Cargonave. Viterra was the third-largest corn exporter and No. 7 soybean shipper.
Combined, the companies accounted for about 23.7% of Brazil corn exports in 2022 and 20.9% of Brazil soybean exports, Cargonave data showed.
In the United States, Viterra’s business of buying and selling grain expanded via its purchase of Gavilon last year. The merger would enhance Bunge’s grain exporting and oilseed processing businesses in the world’s No. 2 corn and soy exporter, where it has a smaller presence than ADM and Cargill.
The deal also expands Bunge’s physical grain storage and handling capacity in major wheat exporter Australia, where the company currently operates just two grain elevators and a port terminal in the western part of the country. Viterra has 55 storage sites in South Australia and western Victoria and six bulk grain export terminals.
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Bunge’s management team, led by CEO Greg Heckman who took over the top role in 2019 when the company itself was a takeover target, will oversee the combined entity.
Heckman oversaw a portfolio review that led Bunge to scale back or sell underperforming operations such as South American sugar and Mexican wheat milling, and invest in its core edible oils business. The company reported record earnings last year after a string of quarterly losses in 2018. Heckman previously led Gavilon from 2008 to 2015.
The Consumer Federation of America said the deal would reduce competition for farmers’ crops and consolidate processing of oilseeds used to make plant-based foods as well as biofuel.
“Further concentration seems likely to harm consumers and the businesses, like plant-based food manufacturers, that rely on these commodities,” said Thomas Gremillion, director of food policy for the Federation.
Bunge said it plans to repurchase $2 billion of its stock to enhance accretion from the deal to adjusted profit. The deal is being backed by a financing commitment of $7 billion from Sumitomo Mitsui Banking Corporation (SMBC).
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Viterra shareholders will own 30% of the combined company following the deal’s expected close in mid-2024, and about 33% after completion of the repurchase plan.
The world’s top vegetable oils producer Bunge had also entered partnerships with oil major Chevron (CVX.N) and seeds and chemicals giant Bayer (BAYGn.DE) to pursue soaring demand for renewable fuels feedstocks.
In Ukraine, the world’s top sunflower producer and largest supplier of sunflower oil, a combined Bunge-Viterra would have three oilseed processing plants across the country’s south and east – in Kharkiv, Dnipro and Mykolaiv.
Acquiring Viterra would bring Bunge’s revenue, which was $67.2 billion in 2022, more in line with that of ADM, which registered sales of nearly $102 billion last year.
In early 2017, Viterra, then known as Glencore Agriculture, attempted a takeover of Bunge, which was then valued at $11 billion. The attempt was rebuffed.
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The merger is expected to generate about $250 million of annual gross pre-tax operational synergies within three years.
Reporting by Karl Plume and Tom Polansek in Chicago, Anirban Sen in New York, and Arunima Kumar and Mrinalika Roy in Bengaluru
Editing by Caroline Stauffer, Matthew Lewis, Devika Syamnath, Kirsten Donovan
Our Standards: The Thomson Reuters Trust Principles.
Karl Plume
Thomson Reuters
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Chicago-based senior commodities correspondent covering agricultural markets, large agribusinesses and the food supply chain and specializing in global trade, farming technology and climate change issues impacting the industry.
Anirban Sen
Thomson Reuters
Anirban Sen is the Editor in Charge for U.S. M&A at Reuters in New York, where he leads the coverage of the biggest deals. After starting with Reuters in Bangalore in 2009, Anirban left in 2013 to work as a technology deals reporter in several leading business news outlets in India, including The Economic Times and Mint. Anirban rejoined Reuters in 2019 as Editor in Charge, Finance to lead a team of reporters, covering everything from investment banking to venture capital. Anirban holds a history degree from Jadavpur University and a post-graduate diploma in journalism from the Indian Institute of Journalism & New Media.
Contact:+1 (646) 705 9409
For several years, the final “Saturday Night Live” episode of the year includes a segment of “Weekend Update” in which co-anchors Colin Jost and Michael Che write jokes that the other must read for the first time on the air. For Jost, this typically has meant Che forces him to say a litany of jokes about race and racism that are horrifically tone deaf and over-the-top — and, in context, often quite funny.
This year, however, Che found a new way to torture Jost: Making him say outrageous things about his wife, Scarlett Johansson — while a camera captured Johansson’s live reactions in the hallway outside of the studio. The actor appeared during the episode’s cold open to welcome host Martin Short into the Five Timers Club, and Che apparently could not resist the chance to have some fun at the couple’s expense.
The bit started with Jost reading that this year, he was going to “read all the jokes in ‘Black voice’ so I don’t get in trouble,” which led into Jost reading a joke about Kamala Harris saying she still supports the idea of slavery reparations.
“Well, damn girl, me too,” Jost said, barely able to get the words out through his exasperated laughter. “Because white people deserve our money back for all those slaves that ran away.”
That was a mere appetizer for what Jost was required to say about his wife. Just the sight of her face in an image over Jost’s shoulder was enough to have some people in the audience screaming in anticipation of what was to come.
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“I want to dedicate this next joke to my boo, Scarlett Johansson,” Jost said, and then a camera cut to a nervous Johansson, clutching a drink as she watched Jost from a monitor above her.
“No! No!” Jost said, as he realized what was happening. “Oh my gosh, she’s so genuinely worried!”
Then he got to the business of reading, for the first time, the jokes Che had written for him.
“Y’all know Scarlett just celebrated her 40th birthday, which means I’m about to get up out of there!” Jost said, again exploding in guffaws before he could even finish the line. After he regained his composure — and Che reminded him that there was more to the joke — Jost continued. “Shiz! Nah, nah. I’m just playin’,” he said. “We just had a kid together, and y’all ain’t see no pictures of him yet, because he’s Black as hell!” — at which point, a Photoshopped image of Jost and Johansson holding a Black baby appeared over Jost’s shoulder.
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Che certainly had his fair share of comedic humiliation, forced to make jokes about “Moana 2” and Jeffrey Epstein, Jay-Z, and his promise to Diddy that “I will help get you off.” But then the spotlight turned back to Jost, who ended the segment with a joke involving his wife that is so R-rated that it genuinely startled Johansson. Warning: This is not for the faint of heart!
“Costco has removed their roast beef sandwich from its menu, but I ain’t tripping,” Jost said. “I be eating roast beef every night since my wife had the kid!” After the audience, Jost and Che all stopped laughing, Jost read the final lines. “Nah, nah, I just playin’ baby. You know I don’t go downtown! Shiz! That’s gay as hell!”
Martin Short hosted the episode with Hozier as musical guest. You can watch the full segment below:
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FIRST ON FOX – Aviva Siegel, the wife of American hostage Kieth Siegel and a former hostage herself, is pleading with everyone and anyone involved in the hostage negotiations to get her husband, and the others, freed from Hamas captivity after they have spent more than 440 days in deplorable conditions.
“Hamas released a video of Keith, and I just saw the picture,” Aviva told Fox News Digital in an emotional interview in reference to a video Hamas released in April. “He looks terrible. His bones are out, and you can see that he’s lost a lot of weight.
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“He doesn’t look like himself. And I’m just so worried about him, because so [many] days and minutes have passed since that video that we received,” she said. “I just don’t know what kind of Keith that we’re going to get back.”
Keith Samuel Siegel, 64, remains hostage in Gaza by Hamas(Hostage Family Forum)
7 US HOSTAGES STILL HELD BY HAMAS TERRORISTS AS FAMILIES PLEAD FOR THEIR RELEASE: ‘THIS IS URGENT’
“I’m worried about all the hostages, because the conditions that they are in are the worst conditions that any human being could go through,” Aviva said. “I was there. I touched death. I know what it feels being underneath the ground with no oxygen.
“Keith and I were just left there. We were left there to die,” she added.
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Aviva and her husband of, at the time 42 years, were brutally abducted from their home in Kibbutz Kfar Aza by Hamas on Oct. 7, 2023, and held together for 51 days before she was released in the November 2023 hostage exchange after suffering from a stomach infection that left her incredibly ill.
She has since tirelessly fought for Kieth’s release, meeting with top officials in the U.S. and Israel, traveling to the United States nine times in the last year and becoming a prominent advocate for the hostages.
“I just hope that he’s with other people from Israel, and if he has them, he’s going to be okay,” Aviva said. “He’s just the person that will make them feel that they’re together. That’s what he did when I was there – he was 100% for me and the hostages that we were with.”
TEL AVIV, ISRAEL – MARCH 30: Released hostage Aviva Siegel, wife of hostage Keith Siegel, speaks during the final weekly ‘bring them home now’ rally on March 30, 2024 in Tel Aviv, Israel. According to the families of hostages forum, this would be the last week a rally is held at ‘hostage square’ citing that the government is not serious about negotiations and instead will be protesting in front of the Knesset from now on. (Photo by Alexi Rosenfeld/Getty Images)
“If you get kidnapped, get kidnapped with Keith, because he was outstanding to everybody. He was strong for all of us. And I’m sure that he’s keeping strong and keeping his hope to come out,” she said.
Aviva recounted their last moments together before they were separated ahead of her release, telling Fox News Digital, “When I left him, I told him to be the strongest – that he needs to be strong for me, and I’ll be strong for him.”
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PALESTINIAN AUTHORITY UNDER PRESSURE AMID RISING RESISTANCE, POPULARITY OF IRAN-BACKED TERROR GROUPS
Top security officials from the U.S., Egypt, and Qatar have been pushing Israel and Hamas to agree to a cease-fire and the return of hostages.
Reports on Thursday suggested that negotiators are pushing for a 42-day cease-fire in which 34 of the at least 50 hostages still assessed to be alive, could be exchanged.
Hamas is also believed to continue to hold at least 38 who were taken hostage and then killed while in captivity, along with at least seven who are believed to have been killed on Oct. 7, 2023 and then taken into Gaza.
Though all the hostages are believed to have been held in deplorable conditions, the children, women – including the female IDF soldiers – the sick and the elderly have reportedly been front listed to be freed first in exchange for Hamas terrorists currently imprisoned.
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“I’m keeping my hope and holding on and just waiting – waiting to hug Keith, and waiting for all the families, to get their families back,” Aviva said. “We need to get them back.”
Aviva said she dreams of the moment that she gets to hug her husband again and watch their grandchildren “jump into his arms.”
“We’ll be the happiest people on Earth,” she said. “All the hostages, I can’t imagine them coming home. It’ll be just the happiest moment for all of the families. We need it to happen.”
Reports in recent weeks suggest there is an increased sense of optimism in bringing home the hostages, but Secretary of State Antony Blinken urged some caution when speaking with MSNBC Morning Joe on Thursday when he said, “We are encouraged because this should happen, and it should happen because Hamas is at a point where the cavalry it thought might come to the rescue isn’t coming to the rescue, [Hezbollah’s] not coming to the rescue, [Iran’s] not coming to the rescue.”
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“In the absence of that, I think the pressure is on Hamas to finally get to yes,” he added. “But look, I think we also have to be very realistic. We’ve had these Lucy and the football moments several times over the last months where we thought we were there, and the football gets pulled away.
“The real question is: Is Hamas capable of making a decision and getting to yes? We’ve been fanning out with every possible partner on this to try to get the necessary pressure exerted on Hamas to say yes,” Blinken added.
Trump also hinted at China’s growing influence around the canal, which connects the Atlantic to the Pacific oceans.
United States President-elect Donald Trump has threatened to demand control of the Panama Canal after accusing Panama of charging excessive rates on US ships passing through one of the busiest waterways in the world.
“Our Navy and Commerce have been treated in a very unfair and injudicious way. The fees being charged by Panama are ridiculous,” Trump posted on his Truth Social platform on Saturday.
“This complete ‘rip-off’ of our Country will immediately stop.”
The US largely built the canal in 1914 and administrated territory surrounding the passage for decades. But Washington fully handed control of the canal to Panama in 1999 after a period of joint administration.
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Trump also hinted at China’s growing influence around the canal, which connects the Atlantic to the Pacific oceans.
“It was solely for Panama to manage, not China, or anyone else,” he said. “We would and will NEVER let it fall into the wrong hands!”
The post was an exceedingly rare example of a US leader saying he could push a sovereign country to hand over territory.
“It was not given for the benefit of others, but merely as a token of cooperation with us and Panama. If the moral and legal principles of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, and without question,” Trump said.
Trump’s tariff plan
It also underlines an expected shift in US diplomacy under Trump, who has not historically shied away from threatening allies and using rhetoric when dealing with counterparts.
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Last month, Trump said he would impose tariffs on Mexican and Canadian imports on day one of his administration and that the measures would remain until the “invasion” of undocumented migrants and drugs came to an end.
“Both Mexico and Canada have the absolute right and power to easily solve this long-simmering problem. We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price!” he posted on his Truth Social platform.
Authorities in Panama did not immediately react to Trump’s post.
An estimated 5 percent of global maritime traffic passes through the Panama Canal, which allows ships travelling between Asia and the US East Coast to avoid the long, hazardous route around the southern tip of South America.
The Panama Canal Authority reported in October that the waterway had earned record revenues of nearly $5bn in the last fiscal year.