USA – Fitch Ratings has upgraded Bunge Global SA’s long-term issuer default rating and the long-term debt ratings of its operating subsidiaries from “BBB-” to “BBB+.”
BBB+ BBB+ means that an obligor has adequate capacity to meet its financial commitments.
This move reflects Fitch’s increased confidence that Bunge will receive the necessary regulatory approvals to proceed with its merger with Viterra Ltd., a transformative deal expected to reshape the global agribusiness landscape.
Announced in June 2023, the Bunge-Viterra merger is poised to create one of the largest agribusiness companies in the world, placing it in closer competition with industry giants such as Cargill and Archer Daniels Midland (ADM).
The merger is anticipated to significantly enhance Bunge’s business profile, expanding its scale and diversifying its operations across regions and commodities.
Fitch noted that the merger would provide Bunge with greater flexibility and resiliency, particularly in volatile market conditions.
Fitch’s upgrade reflects the agency’s belief that the merger will be approved by regulatory bodies across various jurisdictions.
“This merger is anticipated to materially enhance Bunge’s business profile, creating a leading global agribusiness-focused company with significantly increased scale and greater diversification,” Fitch said in its ratings update.
The merger would add origination assets to Bunge’s existing strength in oilseed processing and create a more balanced portfolio across processing, merchandising, handling, and downstream assets.
Recent developments have suggested strong progress toward securing the necessary regulatory approvals.
In August 2024, the European Commission gave a preliminary nod to the merger, provided the companies address specific concerns related to market competition in oilseeds and grains trading.
Meanwhile, regulatory reviews in Canada, the United States, and China are ongoing, with decisions expected in the coming months.
Fitch emphasized that the merger’s completion would increase Bunge’s global footprint and create a more diversified and resilient business model, reducing exposure to single-region or commodity-specific risks.
The agency also highlighted that the transaction could lead to cost synergies of approximately US$250 million annually, further strengthening Bunge’s financial position and competitive edge.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.
