TIDMGLEN
RNS Number : 5679C
Glencore PLC
13 June 2023
Glencore plc
Baar, Switzerland
13 June 2023
Viterra to merge with Bunge
Glencore plc, the Canada Pension Plan Investment Board and
British Columbia Investment Management Corporation, the
shareholders of Viterra Limited, have concluded an agreement with
Bunge Limited to merge Bunge and Viterra in a cash and stock
transaction to create a premier diversified global agribusiness
solutions company, as announced by Bunge today.
Under the terms of the agreement, Glencore will receive
approximately $3.1 billion in Bunge stock and $1.0 billion in cash
for its c. 50% stake in Viterra(1) resulting in Glencore then
holding c. 15% in the combined group(2) . The transaction would
result in a larger, more diversified business, with significant
synergy and re-rating potential. Glencore has agreed to not sell
any stock in Bunge for a period of 12 months following the
completion of the merger, and thereafter to only sell Bunge shares
in orderly sales. Glencore will review periodically its strategy in
respect of the shareholding.
The merger, subject to satisfaction of customary closing
conditions, including receipt of regulatory approvals and approval
by Bunge shareholders, is expected to close in mid-2024.
Gary Nagle, CEO, Glencore, commented:
"The merger of Viterra with Bunge is expected to realise
significant value for Glencore. Our investment in the agriculture
sector dates back over 40 years and has grown from being a small
grains trader to being part of a world leading, fully integrated
global agriculture network.
The combined group would be a premier pure-play agribusiness
solutions company, well placed to meet increased global demand as
well as the ongoing challenge of providing sustainable, traceable
food and feed products to customers around the world. This would be
underpinned by a rigorous focus on creating value for all
stakeholders."
Note 1: Glencore to receive 32.8 million shares valued at
approximately $3.1 billion as per the last closing price of $93.79
on Monday, 12 June 2023.
Note 2: before the commencement of Bunge's announced $2 billion
share buyback programme.
Background
Viterra is Glencore's legacy vertically integrated business
focused on the global agricultural product value chain. In 2016 the
Canada Pension Plan Investment Board and British Columbia
Investment Management Corporation acquired interests in the
business, reducing Glencore's stake to c. 50%. The gross assets of
Viterra on 31 December 2022 were $23.5 billion, and for the year to
31 December 2022 it generated revenue of $53.9 billion, EBITDA of
$2.6 billion and profit before tax of $1.4 billion. The implied
valuation of Viterra under the merger is $8.1 billion. The Viterra
senior management team comprises CEO David Mattiske, CFO Peter
Mouthaan, and the Executive Directors for Global Markets Francis
Mardon and Bas van Hoorn.
All numbers are based on IFRS and references to $ are to US
dollars. Glencore plans to apply the cash proceeds to repay
existing borrowings.
For further information please contact:
Investors
Martin Fewings t: +41 41 709 28 80 m: +41 79 737 56 42 martin.fewings@glencore.com
Media
Charles Watenphul t: +41 41 709 24 62 m: +41 79 904 33 20 charles.watenphul@glencore.com
www.glencore.com
Glencore LEI: 2138002658CPO9NBH955
Notes for Editors
Glencore is one of the world's largest global diversified
natural resource companies and a major producer and marketer of
more than 60 commodities that advance everyday life. Through a
network of assets, customers and suppliers that spans the globe, we
produce, process, recycle, source, market and distribute the
commodities that support decarbonisation while meeting the energy
needs of today.
With around 140,000 employees and contractors and a strong
footprint in over 35 countries in both established and emerging
regions for natural resources, our marketing and industrial
activities are supported by a global network of more than 40
offices.
Glencore's customers are industrial consumers, such as those in
the automotive, steel, power generation, battery manufacturing and
oil sectors. We also provide financing, logistics and other
services to producers and consumers of commodities.
Glencore is proud to be a member of the Voluntary Principles on
Security and Human Rights and the International Council on Mining
and Metals. We are an active participant in the Extractive
Industries Transparency Initiative.
We recognise our responsibility to contribute to the global
effort to achieve the goals of the Paris Agreement by decarbonising
our own operational footprint. We believe that we should take a
holistic approach and have considered our commitment through the
lens of our global industrial emissions. Against a 2019 baseline,
we are committed to reducing our Scope 1, 2 and 3 industrial
emissions by 15% by the end of 2026, 50% by the end of 2035 and we
have an ambition to achieve net zero industrial emissions by the
end of 2050. For more detail see our 2022 Climate Report on the
publication page of our website at glencore.com/publications .
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Disclaimer
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END
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