The European Commission has granted conditional approval for US agribusiness giant Bunge to acquire its competitor Viterra in a deal valued at over £6.3 billion.

Bunge initially announced its bid for the Dutch company in June 2023, aiming to create a global leader in the food commodities trading sector.

The Commission's approval comes after Bunge and Viterra proposed a series of measures to address the Commission's concerns. These measures include divesting all of Viterra's oilseed operations in Hungary and Poland, along with several logistical assets associated with these businesses.

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EU competition chief Margrethe Vestager stated: "We had concerns that the transaction could affect the supply chains of rapeseed and sunflower seed in Central Europe, with potential ramifications across the food, feed, and biofuel industries.

"The divestiture of Viterra's entire oilseeds business in Hungary and Poland will preserve competition in these markets.” she said.

Bunge, based in the US, primarily focuses on the processing, sale, and trading of oilseed meals and oils. The company also deals in grains, milled products, unprocessed oilseeds, sugar, and other agricultural products.

Viterra, headquartered in the Netherlands, is involved in the trading of agricultural commodities such as grains, oilseeds, oilseed meals, and oils. Additionally, Viterra trades in other unprocessed products like cotton and milled goods.