The British Columbia Investment Management Corp. and the Canada Pension Plan Investment Board are backing an acquisition in the agricultural industry.
Bunge Ltd., an oilseed and grain trader that generated US$67.23 billion in revenue in 2022, will take over privately held rival Viterra Ltd. Under the terms of a definitive agreement, Viterra shareholders will receive 65.6 million shares of Bunge stock — worth about US$6.2 billion — as well as $2 billion in cash. As part of the transaction, Bunge will assume US$9.8 billion of debt associated with Viterra’s highly liquid readily marketable inventories.
The boards of both companies unanimously approved an agreement outlining the acquisition. Viterra’s board includes two representatives of the CPPIB — Bruce Hogg, managing director and head of power and renewables, and James Bryce, managing director of portfolio value creation — and one from the BCI — Lincoln Webb, senior vice-president of infrastructure and renewable resource capital.
The CPPIB, which owns a 39.99 per cent stake in Viterra, will receive 26.25 million shares — worth about US$2.4 billion — and US$800 million in cash. The BCI, which owns a 9.99 per cent stake in Viterra, will receive 6.625 million shares — worth about US$600 million — and US$200 million in cash.
In other news, the Public Sector Pension Investment Board is investing in a new investment fund targeting opportunities related to greenhouse gas emission reductions.
Climate assets fund I aims to use institutional capital to invest in businesses aimed at radically reducing or eliminating carbon emissions in various sectors. It was closed to investors after securing capital commitments of US$1.5 billion. The California State Teachers’ Retirement System is the fund’s leading investor, followed by PSP Investments.
In a press release, Just Climate, the U.K.-based investment company behind the fund’s creation, said it had allocated a portion of the fund to invest in an electric vehicle charging solutions company, a steel producer using a low-emissions smelting process and a company using waste material to generate renewable energy.
Read: PSP Investments focusing on climate change in updated proxy voting guidelines