The proposed $34 billion merger between U.S. grains merchant Bunge and Glencore-backed Viterra is set to be decided by European Union antitrust regulators by July 18, according to a European Commission filing.
Bunge and Viterra, a major agricultural trading firm, announced the merger a year ago in an effort to rival global giants like Archer-Daniels-Midland and Cargill. The combined entity would create one of the world’s largest agricultural trading companies.
The European Commission, which serves as the EU’s competition enforcer, can either clear the deal with or without remedies after its preliminary review, or it can open a four-month investigation if it has serious concerns about the merger’s impact on competition.
Bunge CEO Greg Heckman has expressed confidence that the company may be able to avoid having to sell assets to win regulatory approval, citing healthy competition in key commodity markets like Canada, the United States, Brazil, Argentina, China and parts of Europe.
However, the Canadian competition watchdog has cited major concerns about the merger, and farm groups have voiced similar worries. The deal also needs approval from regulators in North America, South America and China.
The July 18 deadline set by the European Commission will be a crucial milestone in determining whether the proposed Bunge-Viterra merger can proceed. The outcome of the EU’s review could have significant implications for the global agricultural trading landscape.