The $34 billion merger announced by Bunge and Glencore-backed Viterra will boost the dominance of Brazil’s biggest grain exporter and wheat miller, gaining control over farmers in some regions, experts said. The combined operation could originate as much as twice the volume of runner-up and probably account for less than 12% of Brazil’s output, said an executive at a large trading company in Brazil. That is unlikely to trigger scrutiny from antitrust regulators, said three industry experts, although it could be enough to gain leverage over farmers in some parts of Brazil.
Sources: Nova Cana/Reuters (*Translated by Ia Niani)