Bunge is merging with Viterra, creating an agricultural giant worth over $30 billion.

American grain trader Bunge is finalizing a merger with Viterra. As a result, an agricultural giant worth over $30 billion, including debt, will emerge, according to Reuters citing informed sources.

The terms of the deal, previously undisclosed, will be closely scrutinized by antitrust regulators.

The market value of Bunge is estimated at around $14 billion, and the total debt, excluding cash, is about $2.7 billion. For the most part of the deal, the company will pay with shares, but cash and bank borrowings will also be used.

Bunge's management team, led by CEO Greg Heckman, will run the combined enterprise, sources added.

Private shareholders of Viterra, including Glencore, the Canada Pension Plan Investment Board (CPPIB), and the British Columbia Investment Management Corporation, may reach an agreement on June 10-11 if the negotiations are successful.

However, it is possible that the deal could fall through at the last minute, warned sources who requested anonymity as this information is confidential. The final deal value may change depending on the movement of Bunge's shares by the time the agreement is reached, the sources said.

Trade in key food commodities such as wheat, corn, and soybeans is already concentrated among Bunge and three other major players - Archer-Daniels-Midland Co, Cargill Inc, and Louis Dreyfus Co. They are sometimes referred to as the "ABCD" and generate significant profits. Last year, Bunge was the largest exporter of corn and soybeans from Brazil. Viterra was the third-largest corn exporter and the seventh-largest soybean supplier.