Bunge Stock Gains After Closing Viterra Deal, Fitch Sees ‘Greater Profit Resilience’

Bunge (BG) stock rose 1.5% in extended trading on Wednesday, after similar gains during the regular session, after the grain merchant completed its long-delayed acquisition of Glencore’s Viterra for $8.2 billion.

The deal creates a grain trading behemoth, enabling Bunge to better compete with its larger rivals, ADM and Cargill, amid uncertainty in global grain markets due to tariffs and geopolitical tensions. Bunge was able to close the deal after receiving the regulatory approval from China, the last major antitrust hurdle.

“Together, we’ve formed a stronger organization with enhanced capabilities and expertise to meet the evolving needs of our customers,” Bunge CEO Greg Heckman said in a statement.

Alongside a stronger footing in the U.S., the deal also bolsters Bunge's export capacity and physical grain storage and handling footprint in major global wheat suppliers Canada and Australia.

“This results in an improved mix of processing, merchandising, and downstream assets that should increase operating optionality, support greater profit resilience, and lower working capital volatility, particularly during market dislocations,” analysts at Fitch said in a statement.

The ratings agency also noted that significant growth investments should further strengthen Bunge's oilseed platform, expand refined and specialty oils product solutions, and boost exposure to renewable feedstock capacity.

Retail sentiment on Stocktwits about Bunge was in the ‘neutral’ territory, while retail chatter was ‘normal.’

“Integration risks remain, but the combined entity's scale could dominate global grain flows,” one user said.

Bunge estimates operational and network benefits of approximately $340 million annually over four years, targeting procurement, overhead, and logistics.

Bunge stock has risen nearly 5% this year.

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