Bunge and Viterra propose to sell EU assets in bid to secure EU approval for merger

Grain merchant in the United States Elastic and Glencore-backed Viterra have offered to divest assets in two EU countries in a bid to win EU antitrust approval for their $34 billion (€31.2 billion) merger, people with direct knowledge of the matter said.

The two companies announced their merger a year ago to better compete with global giants Archer-Daniels-Midland and Cargill.

They submitted their concessions to the European Commission on July 11, 2024, according to an update on the EU executive’s website that did not provide details.

Elastic and Viterra had initially hoped to get unconditional EU clearance after regulators’ preliminary review of the deal, but the EU competition authority later raised concerns about specific EU issues, the people said.

The European Competition Authority has extended its decision deadline from July 18 to August 1.

“Constructive discussions”

A spokesperson for Elastic said the company was in constructive discussions with the European Commission and confirmed it had offered concessions without specifying which ones.

“We are confident that the commitments we have proposed address the concerns expressed by the Commission, which are limited to specific markets,” the spokesperson said.

The Commission should seek feedback from competitors and customers before deciding whether to accept the concessions or demand more. It can open a four-month investigation if it has serious concerns.

The deal has raised concerns from Canada’s competition watchdog and farm groups. It requires approval from regulators in North America, South America and China.

In April, in a statement accompanying an official report to Ottawa, Canada’s Competition Bureau said the deal was “likely to result in substantial anti-competitive effects and a significant loss of rivalry between Viterra and Bunge in agricultural markets in Canada.”