China Greenlights Bunge-Viterra Mega-Deal with Conditions

China's market regulator has given the nod to the $34 billion merger between Bunge Global SA and Glencore-backed grain handler Viterra. This decision, announced on Monday, marks the final regulatory approval needed for the merger proposed two years ago.

The regulator expressed concerns about potential reduced competition in China's soybean, barley, and rapeseed import markets due to the merger. To address these concerns, Bunge and Viterra are required to fulfill five key obligations, such as reporting their quarterly sales volumes to Chinese customers within 30 days after each quarter.

Additionally, the merged entity must ensure a steady and sufficient supply of agricultural products, even amidst global crop shortages. This regulatory approval follows conditional affirmations from Canada, the European Union, and other markets, setting the stage for a formidable competitor in the global agribusiness arena alongside top players like Archer-Daniels-Midland and Cargill.

(With inputs from agencies.)