US grains merchant Bunge and Glencore-backed Viterra have offered to divest assets in two EU countries aimed at winning EU antitrust approval for their $34 billion (€31.2 billion) merger, people with direct knowledge of the matter said.
The companies announced their merger a year ago to better compete with global giants Archer-Daniels-Midland and Cargill.
They submitted their concessions to the European Commission on 11 July 2024, according to an update on the EU executive's website which did not provide details.
Bunge and Viterra had initially hoped to secure unconditional EU clearance after the regulators' preliminary review of the deal but the EU competition enforcer subsequently cited concerns on specific European issues, the people said.
The EU antitrust watchdog extended its deadline for a decision to 1 August from 18 July.
'Constructive Discussions'
A spokesperson for Bunge said the company was in constructive discussions with the European Commission, and confirmed it offered concessions without specifying what they were.
"We are confident that the commitments we have offered address the areas of concern expressed by the Commission, which are limited to specific markets," the spokesperson said.
The Commission is expected to seek feedback from rivals and customers before deciding whether to accept the concessions or demand more. It can open a four-month investigation if it has serious concerns.
The deal has triggered concerns from the Canadian competition watchdog and farm groups. It requires regulatory clearance in North America, South America and China.
In April, in a statement accompanying a formal report to Ottawa, Canada's Competition Bureau said the deal was "likely to result in substantial anti-competitive effects and a significant loss of rivalry between Viterra and Bunge in agricultural markets in Canada".
