(AOF) – Shareholders of Bunge (American oilseed processor and grain trader) have approved the acquisition of Viterra Limited, including the issuance of 65,611,831 common shares, par value $0.01 per share, of Bunge. They also voted in favor of changing the residency of the parent company of the Bunge Group from Bermuda to Switzerland. The merger is expected to be completed in mid-2024, subject to the satisfaction of customary closing conditions, including receipt of regulatory approvals.
Last June, Bunge concluded a definitive agreement with Viterra (a Canadian agri-food company whose shareholders include Glencore, an Anglo-Swiss trading, brokerage and raw materials extraction company).
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Soaring energy prices and a call for help
In the past, energy represented a fixed cost of 3% of turnover. This year, this percentage rises to 5% or even 7% for VSE-SMEs, according to Ania (National Association of Food Industries. Professionals are very worried because until the end of 2022 they generally benefit from coverage to cushion these increases. However, they are not renewed for 2023 and after. Consequently, 25 of the main inter-professional organizations (Intercéales, Inaporc, Semae, etc.) are calling on the State for help in the face of the erosion of their margins and their capacity to investment.
The State has proposed several devices, including an “electricity shock absorber”, which are considered insufficient. The organizations also deplore the failure of European negotiations to achieve a price shield to avoid distortions of competition. Agriculture and agri-food demand a maximum ceiling price of €180/MWh while many companies buy at prices above €500/MWh on the French market.