We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Bunge Limited (BG - Free Report) has announced that its shareholders have approved the pending merger with Viterra Limited. This marks a major step toward the creation of one of the world’s largest agribusiness companies worth $34 billion including debt.
The merger is expected to close in the middle of the next year, after meeting the customary closing conditions, which include the receipt of regulatory approvals.
The shareholders have approved the issuance of 65,611,831 common shares, par value 1 cent per share of Bunge Limited. They have also voted in favor of changing the place of incorporation and residence of the ultimate parent company of the Bunge Group from Bermuda to Switzerland.
The merger was announced in June 2023 and was unanimously approved by the boards of directors of both Bunge and Viterra.
Viterra operates a network of agricultural storage, processing and transport assets across 37 countries. The combined entity will boast an enhanced global network with a diversified agriculture network covering all major crops.
The combination of both the companies’ highly complementary asset footprints and distribution network will connect the world’s largest production regions to areas of the fastest-growing demand. This will enhance the geographical balance and adaptability of the global value chains. A diversified global mix of earnings across processing, handling and merchandising, and value-added products will lead to solid cash flow generation.
Along with increasing operational efficiency, the combination will further enhance Bunge’s innovation know-how. This will equip the company to address the pressing needs of food security, efficiency for end-customers, market access for farmers, and sustainable food, feed and renewable fuel production. Additionally, the combination is expected to benefit from significant incremental network synergies across joint commercial excellence opportunities, vertical integration efficiencies, and improved logistics optimization and trading optionality from a larger and broader network.
The merger is expected to lead to around $250 million of annual gross pre-tax operational synergies in the first three years. The larger, more diversified footprint of the combined company will ensure stable cash flows. The improvement in the business risk and credit profile is expected to drive capital structure efficiencies and cost-of-capital benefits. The transaction is expected to be accretive to Bunge’s adjusted earnings per share in the first full year post closing. It is expected to improve with the realization of synergies.
Price Performance
Shares of Bunge have gained 21.4% over the past year compared with the industry's 11.7% growth.
Hawkins has an average trailing four-quarter earnings surprise of 25.5%. The Zacks Consensus Estimate for HWKN’s fiscal 2024 earnings is pegged at $3.40 per share. The consensus estimate for 2024 earnings has moved 38% north in the past 60 days. Its shares have gained 58% in the last year.
Carpenter Technology has an average trailing four-quarter earnings surprise of 10%. The Zacks Consensus Estimate for CRS’s fiscal 2024 earnings is pegged at $3.48 per share. The consensus estimate for 2023 earnings has moved 8% north in the past 60 days. Its shares have gained 109.6% in the last year.
L.B. Foster has an average trailing four-quarter earnings surprise of 134.5%. The Zacks Consensus Estimate for FSTR’s 2023 earnings is pegged at 53 cents per share. Earnings estimates have been unchanged in the past 60 days. FSTR’s shares have gained 98.4% in the last year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Bunge (BG)-Viterra Merger Receives Shareholders' Approval
Bunge Limited (BG - Free Report) has announced that its shareholders have approved the pending merger with Viterra Limited. This marks a major step toward the creation of one of the world’s largest agribusiness companies worth $34 billion including debt.
The merger is expected to close in the middle of the next year, after meeting the customary closing conditions, which include the receipt of regulatory approvals.
The shareholders have approved the issuance of 65,611,831 common shares, par value 1 cent per share of Bunge Limited. They have also voted in favor of changing the place of incorporation and residence of the ultimate parent company of the Bunge Group from Bermuda to Switzerland.
The merger was announced in June 2023 and was unanimously approved by the boards of directors of both Bunge and Viterra.
Viterra operates a network of agricultural storage, processing and transport assets across 37 countries. The combined entity will boast an enhanced global network with a diversified agriculture network covering all major crops.
The combination of both the companies’ highly complementary asset footprints and distribution network will connect the world’s largest production regions to areas of the fastest-growing demand. This will enhance the geographical balance and adaptability of the global value chains. A diversified global mix of earnings across processing, handling and merchandising, and value-added products will lead to solid cash flow generation.
Along with increasing operational efficiency, the combination will further enhance Bunge’s innovation know-how. This will equip the company to address the pressing needs of food security, efficiency for end-customers, market access for farmers, and sustainable food, feed and renewable fuel production. Additionally, the combination is expected to benefit from significant incremental network synergies across joint commercial excellence opportunities, vertical integration efficiencies, and improved logistics optimization and trading optionality from a larger and broader network.
The merger is expected to lead to around $250 million of annual gross pre-tax operational synergies in the first three years. The larger, more diversified footprint of the combined company will ensure stable cash flows. The improvement in the business risk and credit profile is expected to drive capital structure efficiencies and cost-of-capital benefits. The transaction is expected to be accretive to Bunge’s adjusted earnings per share in the first full year post closing. It is expected to improve with the realization of synergies.
Price Performance
Shares of Bunge have gained 21.4% over the past year compared with the industry's 11.7% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Bunge currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Hawkins, Inc. (HWKN - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and L.B. Foster Company (FSTR - Free Report) . HWKN and CRS sport a Zacks Rank #1 (Strong Buy) at present, and FSTR carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hawkins has an average trailing four-quarter earnings surprise of 25.5%. The Zacks Consensus Estimate for HWKN’s fiscal 2024 earnings is pegged at $3.40 per share. The consensus estimate for 2024 earnings has moved 38% north in the past 60 days. Its shares have gained 58% in the last year.
Carpenter Technology has an average trailing four-quarter earnings surprise of 10%. The Zacks Consensus Estimate for CRS’s fiscal 2024 earnings is pegged at $3.48 per share. The consensus estimate for 2023 earnings has moved 8% north in the past 60 days. Its shares have gained 109.6% in the last year.
L.B. Foster has an average trailing four-quarter earnings surprise of 134.5%. The Zacks Consensus Estimate for FSTR’s 2023 earnings is pegged at 53 cents per share. Earnings estimates have been unchanged in the past 60 days. FSTR’s shares have gained 98.4% in the last year.