CPP gains 12% equity in Viterra-Bunge combination

CPP Investments strengthens its position in agriculture sector

CPP gains 12% equity in Viterra-Bunge combination

CPP Investments has announced its support for the proposed merger between Viterra and Bunge, an agriculture, commodities, and food company.

Under the agreement, CPP Investments will receive a 12% equity position in the combined company and $0.8 billion in cash upon the transaction's completion.

The investment board has held a 40% stake in Viterra since 2016.

The merger brings together Bunge, a leader in oilseed processing and specialty plant-based oils and fats, and Viterra, a global agriculture network that connects producers with consumers through sustainable and traceable agricultural products.

The companies aim to enhance their global network, diversify across geographies, seasonal cycles, and crops, and better serve customers.

Glencore and British Columbia Investment Management Corporation, who jointly own the remaining 60% of Viterra, will also become shareholders of Bunge as part of the merger.

"Since 2016, CPP Investments has supported Viterra on its journey to becoming a leading global agriculture business. We are pleased to support the business in its next phase of growth through this merger with Bunge," said Bruce Hogg, managing director, head of sustainable energies, CPP Investments. "Combining these two highly complementary companies will create an enhanced agribusiness that can provide an expanded product offering to end-customers, with an increased ability to innovate and promote sustainable practices in the global food supply."

The transaction is expected to close in mid-2024, subject to customary closing conditions, regulatory approvals, and approval by Bunge shareholders.

CPP Investments' Sustainable Energies group, which focuses on renewable and conventional energy, agriculture, and other sectors, had a portfolio totalling C$32 billion in net assets as of March 31, 2023.