U.S. grains merchant Bunge BG.N and Glencore-backed GLEN.L Viterra have offered concessions aimed at winning EU antitrust approval for their $34 billion merger, the European Commission website showed on Friday.
The companies announced their merger a year ago, in a challenge to global giants Archer-Daniels-Midland ADM.N and Cargill CARG.UL. The European Commission, which did not provide details of the concessions in line with its policy, extended its deadline for a decision to Aug. 1 from July 18.
A spokesperson for Bunge said the company was in constructive discussions with the European Commission and confirmed it offered concessions, without specifying what they were. “We are confident that the commitments we have offered address the areas of concern expressed by the Commission, which are limited to specific markets,” the spokesperson said.
The European Commission is expected to seek feedback from rivals and customers before deciding whether to accept the concessions or demand more. It can open a four-month investigation if it has serious concerns.
The $34 billion merger deal has triggered concerns from the Canadian competition watchdog and farm groups. It requires regulatory clearance in North America, South America, and China, in addition to the European Union.
By offering concessions, Bunge and Viterra are aiming to address the European Commission’s antitrust concerns and secure approval for the merger, which would create a major player in the global grains and oilseeds market.