China’s market regulator conditionally approved the $34 billion merger between agribusiness giants Bunge Global SA and Glencore-backed Viterra on Monday, removing the final regulatory obstacle for the deal announced two years ago.
The approval, confirmed after Bunge’s Friday announcement, comes with binding obligations addressing competition concerns. The regulator warned the merged entity’s increased market share could harm competition in China’s imported soybean, barley, and rapeseed markets.
Key Conditions Imposed:
- Quarterly Reporting: Mandatory submission of sales volumes to Chinese customers within 30 days after each quarter ends.
- Supply Guarantee: Must maintain a “timely, stable, reliable, and sufficient” supply of soybeans, rapeseed, and other key agricultural products to China.
- Shortage Mitigation: Required to “make every effort” to uphold stable supplies even during global crop shortages.
China’s green light follows conditional approvals from Canada, the European Union, and other major markets in recent months. The merger, delayed nearly a year by regulatory scrutiny, will create a crop trading and processing powerhouse rivaling Archer-Daniels-Midland and Cargill.