Reports > Infrastructure
Large-scale mergers anticipated to result in significant upheavals in the global grain market
2023.12.13 Jae-ho Jung
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Executive Summary
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The merger of Bunge with Viterra, Glencore's grain subsidiary, heralds the creation of a Global Top 2 giant in the grain industry with total assets of $34 billion.
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The merger is expected to achieve pre-tax profits of approximately $2.5 billion within three years through synergies with Viterra, exercising dominance in the global markets for soybeans and wheat.
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Antitrust investigations in key soybean production and distribution markets such as Canada, Argentina, the United States, and Europe may necessitate structural adjustments, including the partial divestment of assets held by both companies.
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Continuous monitoring is essential in the ongoing restructuring process, especially considering the high dependence on imports and the need for stability in the soybean processing industry to ensure a stable supply of soybeans and other crops in the domestic market.
