China approves Bunge's merger with Viterra with conditions on crop supply stability

China's market regulator has granted conditional approval for global agribusiness Bunge Global SA's merger with Glencore-backed grain handler Viterra, it said on Monday, clearing the final hurdle for the $34 billion mega-deal announced two years ago.

Confirmation came after Bunge announced it had received regulatory approval from China last Friday.

The regulator said the merged company's increased market share and control could potentially reduce competition in China's imported soybean, barley, and rapeseed markets, and thus approved the deal with conditions.

Under these conditions, Bunge and Viterra committed to five obligations, including a requirement to report quarterly sales volumes to Chinese customers within 30 days after each quarter’s end.

They must also maintain a "timely, stable, reliable, and sufficient" supply of soybeans, rapeseed, and other agricultural products, "making every effort" to uphold this during global crop shortages.

China's approval was the last regulatory green light Bunge needed after conditional approvals from Canada, the European Union, and other markets in recent months.

The deal will create a global crop trading and processing giant rivaling Archer-Daniels-Midland and Cargill, though competition concerns and regulatory scrutiny delayed the closing by nearly a year.