Bloomberg reports that the US-China trade dispute has stalled Bunge's $34 Billion Viterra merger.

Bloomberg News, citing sources familiar with the situation, reported that the trade tensions between China and the United States are preventing Bunge Global from completing its $34 billion merger.

We are at the final stages of regulatory approval. Bunge said in an email that it was grateful for the constructive dialogue between Chinese officials and Bunge throughout the regulatory review.

First announced in 2023, the merger is now a reality. If finalized, it will create a global crop trading and processing giant closer in scale to chief rivals Archer-Daniels-Midland and Cargill .

The deal is still a long way from being completed.

Bunge says it has received most of the global approvals needed for the merger, which was originally expected to close by mid-2024.

European Union

Canada

According to the report, Bunge executives are increasingly worried that the political divide between the two nations will further stall the process.

Bloomberg reported that Bunge CEO Greg Heckman visited China several times to meet with authorities. Bloomberg reported that Chinese regulators had expressed concerns about the merger increasing industry concentration, and possibly affecting Beijing's interests in food security.

According to the report, the relevant regulators are performing a thorough compliance review due to the importance of the deal.

Viterra didn't immediately respond to our request for a comment. (Reporting and editing by Anil D’Silva in Bengaluru, Pooja Dasai, and Vallari Srivastava)

(source: Reuters)