Bloomberg — A merger between Bunge (BG) and Viterra, which is owned by Glencore, to create a giant agricultural company $25 billion he now has the backing of two of Canada’s largest pension funds, according to a person with direct knowledge of the matter.

O Canada Pension Plan Investment Board and the Investment Management in British Columbia would be willing to exchange their combined 49.98% stake in Viterra for investments in the merged entity, said the person, who asked not to be named because it is a private transaction.

Viterra spokespeople and two pension fund managers declined to comment.

Viterra and Bunge are negotiating the structure of a possible transaction, the Bloomberg News last week. One option being discussed calls for a stock deal in which Bunge shareholders would own the majority of the combined group, sources say.

A glencore he’s been flirting with the idea of ​​a deal with Bunge for years, and there’s no certainty he’ll ever come to terms this time around. In 2017, the Swiss commodities giant approached Bunge for an out-of-court takeover, but was publicly rebuffed by the US company. Since then, Bunge has replaced its CEO and other senior executives.

The newspaper globe and mail, of Canada, reported on Monday (29) that Canadian pension funds would almost certainly swap their shares for a stake in Bunge, citing people familiar with the negotiations. Glencore, with a 49.99% stake, would do the same, the newspaper reported.

– With the collaboration of Isis Almeida and Layan Odeh

More at Bloomberg.com

Read also

Copper Fever: Electric Car Era Draws $95 Billion in Latin America Projects

Fertilizer-based Unigel suffers with credit and has a downgraded rating by Fitch