(Tiper Stock Exchange) – bungeethe giant in the agri-food world that deals with the supply chain, has stipulated a definitive agreement with Viterraspecialist in grain handling, for merge with Viterra in one stock and cash transaction. The merger of Bunge and Viterra will create “an innovative global agribusiness company well positioned to meet the needs of increasingly complex markets and better serve farmers and end customers,” it said in a statement.
Under the terms of the agreement, which was unanimously approved by the Bunge and Viterra Boards of Directors, Viterra shareholders will receive approximately 65.6 million Bunge shares, for a total value of approximately $6.2 billion and approximately $2 billion dollars in cash, representing a consideration mix of approximately 75% Bunge stock and 25% cash.
As part of the transaction, Bunge will assume $9.8 billion of Viterra debt, which is associated with approximately $9 billion of highly liquid, easily traded inventory.
Also, Bunge plans to buy back 2 billion dollars of actions Bunge to improve adjusted EPS accretion.
The shareholders of Viterra will hold the 30% of the combined company on a fully diluted basis at the closing of the transaction and approximately 33% after completion of the repurchase plan.