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GLN: Viterra to merge with Bunge
GLENCORE PLC
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
ISIN: JE00B4T3BW64
LEI: 2138002658CPO9NBH955
Baar, Switzerland
13 June 2023
Viterra to merge with Bunge
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 Viterra(1) resulting in Glencore then holding
c. 15% in the combined group(2). 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 agribusiness 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
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.
For further information please contact:
Investors
Martin Fewings t: +41 41 709 28 80 m: +41 79 737 56 42 martin.fewings@glencore.com
Media
Charles Watenphul t: +41 41 709 24 62 m: +41 79 904 33 20 charles.watenphul@glencore.com
www.glencore.com
Glencore LEI: 2138002658CPO9NBH955
Notes for Editors
Glencore is one of the world’s largest global diversified natural resource companies and a major producer
and marketer of more than 60 commodities that advance everyday life. Through a network of assets,
customers and suppliers that spans the globe, we produce, process, recycle, source, market and distribute
the commodities that support decarbonisation while meeting the energy needs of today.
With around 140,000 employees and contractors and a strong footprint in over 35 countries in both
established and emerging regions for natural resources, our marketing and industrial activities are
supported by a global network of more than 40 offices.
Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation,
battery manufacturing and oil sectors. We also provide financing, logistics and other services to producers
and consumers of commodities.
Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the
International Council on Mining and Metals. We are an active participant in the Extractive Industries
Transparency Initiative.
We recognise our responsibility to contribute to the global effort to achieve the goals of the Paris
Agreement by decarbonising our own operational footprint. We believe that we should take a holistic
approach and have considered our commitment through the lens of our global industrial emissions. Against
a 2019 baseline, we are committed to reducing our Scope 1, 2 and 3 industrial emissions by 15% by the end of
2026, 50% by the end of 2035 and we have an ambition to achieve net zero industrial emissions by the end of
2050. For more detail see our 2022 Climate Report on the publication page of our website at
glencore.com/publications.
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Disclaimer
The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities. In this
document, “Glencore”, “Glencore group” and “Group” are used for convenience only where references are made to
Glencore plc and its subsidiaries in general. These collective expressions are used for ease of reference only and do not
imply any other relationship between the companies. Likewise, the words “we”, “us” and “our” are also used to refer
collectively to members of the Group or to those who work for them. These expressions are also used where no useful
purpose is served by identifying the particular company or companies.
Date: 13-06-2023 12:59:00
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