Viterra's elevators have better locations across Bunge's network, Heckman said. In the United States, the deal marks a reversal after Bunge sold 35 grain elevators in 2021, citing poor profits. Viterra's large network of grain shipping terminals and country elevators, particularly in oilseed production regions of North America, Argentina and Europe, would complement Bunge's existing oilseed processing business, analysts said. "(Buying Viterra) allows us to fill in some of the areas where we needed additional origination, where we needed to be closer to the farmer to drive regenerative ag and sustainable practices," Heckman said. Its investment in startup Covercress gives Bunge access to future supplies of a new low-carbon-intensity oilseed for crushing. "This really accelerates the strategic growth platform that we've laid out," Bunge CEO Greg Heckman said in an interview on Tuesday.īunge has in the past two years entered partnerships with oil major Chevron (CVX.N) to crush oilseeds for renewable diesel and seedmaker Corteva to tailor crops for biofuel feedstocks. Oils produced primarily from soy and canola are seeing increasing demand from refiners for low-carbon renewable diesel. Though its grain trading business is smaller than rivals Cargill and ADM, U.S.-based Bunge (BG.N) is already the world's largest oilseed processor and producer of vegetable oil. The deal would make the combined company better able to capitalize on an anticipated surge in demand for soybean and canola oil to produce biofuels in coming years than its rivals, but more consolidation in the industry leaves farmers with fewer buyers for their crops. Under the deal to create an agricultural giant worth about $34 billion including debt, Bunge's crushing capacity will increase by nearly one-third, to 75 million metric tons annually, adding plants in Europe, Canada and Argentina. CHICAGO, June 14 (Reuters) - Bunge's planned acquisition of Viterra would make the world's biggest oilseed crusher even more dominant and secure a larger role in the expanding renewable diesel industry, although it may face competition hurdles.
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