World Grain - September 2024 - 10

NEWS REVIEW
European Commission OKs
Bunge-Viterra merger
BRUSSELS, BELGIUM - The European Commission has
approved Bunge Global SA's acquisition of Viterra Ltd. with
the condition that the companies will divest the entirety of
Viterra's oilseed businesses in Hungary and Poland and logistical
assets tied to those operations.
Bunge and Viterra announced in June 2023 that they had
agreed to a merger that will create one of the world's largest
agribusiness companies, moving it closer in size and scope to
leading agribusiness giants Cargill and ADM.
In its Aug. 1 announcement, the EC said the merger as initially
proposed would have reduced competition in European
Union markets for oilseeds and related products, including
oilseed meals for animal consumption, crude oilseed oils and
refined oilseed oils for human consumption or for biodiesel
production.
In particular, the transaction would have negatively affected
competition in Central Europe, where both parties are active
across the whole supply chain, the EC said, noting the potential
ST. LOUIS, MISSOURI, US - Lower crushing margins
weighed on second-quarter earnings at Bunge Global SA,
sending the company's stock price down nearly 10% to a low
of $103.29 on the New York Stock Exchange on July 31. The
company's stock ultimately ended the day at $105.23, down
8.2% from the close of $114.56 on July 30.
In the second quarter ended June 30, Bunge posted net
Louis Dreyfus adds to Paraguay barge fleet
ASUNCIÓN, PARAGUAY - Louis Dreyfus Co. (LDC)
has added 12 jumbo barges with a nominal capacity to transport
30,000 tonnes of solid products to the fleet of its Logico
Paraguay river transportation subsidiary, a 20% capacity
increase.
With this fleet, LDC primarily transports corn, soybeans
and soy meal and oil from various ports in Paraguay to ports
in Argentina and Uruguay, where they are processed by the
for concentration of oilseed processing capacity in the region.
Following positive feedback during the market test, the
EC concluded that the transaction, as modified by the commitments,
would no longer raise competition concerns.
Compliance with the commitments will be monitored by an
independent trustee under commission supervision.
Regulatory approval also is needed in North America, South
America and China.
Bunge Q2 earnings slide on weak processing margins
income of $70 million, equal to 48¢ per share on the common
stock, down sharply from $622 million, or $4.09 per share, in
the previous year's second quarter.
Adjusted earnings were $1.73 per share, down 54% from
$3.72 per share in the previous year's second quarter. Net
sales in the second quarter were $13.24 billion, down 12%
from $15.05 billion in the second quarter of the previous year.
company and/or transshipped to oceangoing vessels for subsequent
shipment to global destinations. On the return journey
to Paraguay, the upstream flow supports the import of
other agricultural goods, such as fertilizers, for the domestic
market.
Logico Paraguay was established by LDC in 2007 to transport
agricultural goods through the Paraná-Paraguay waterway
for export to global markets.
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World Grain - September 2024

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