Prairie farm groups concerned about Bunge Viterra merger

There's some concern about the loss of competition in the grain sector with the proposed merger of two mega rivals in the grain industry.

The announcement of a merger between U.S. based Bunge and Viterra would create a global agribusiness worth about U.S. $34 billion.

Bunge's purchase offer of U.S. $8.2 billion dollars will see Viterra shareholders receive 65.6 million shares of Bunge stock (valued at U.S. $6.2 billion) and U.S. $2 billion in cash.

For Viterra shareholders Glencore, CPP Investments, and British Columbia Investment Management Corporation that will mean a mix of approximately 75% Bunge stock and 25% cash.

In addition, Bunge will acquire $9.8 billion of  Viterra debt and has plans to repurchase in time US$2 billion of its own stock.