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Trade tensions between the United States and China are throwing a spanner in billions of dollars worth of acquisitions and initial public offerings, dealing a fresh blow to a dealmaking market that was already slow to recover this year.
Prevailing tensions between the two nations have reportedly stalled Bunge Global SA’s $8.2 billion acquisition of Viterra, as Chinese regulatory approval remains elusive.
According to people familiar with the matter reported by Bloomberg on Friday, Bunge executives, including CEO Greg Heckman, have made repeated trips to China, hoping to secure the green light.
But with the political rift deepening, concerns are growing that the process may drag on.
Bunge, one of the world’s largest agricultural commodity traders and a member of the so-called ABCD quartet, announced its intention to acquire Glencore-backed Viterra in June 2023.
The merger is set to create a $25 billion global powerhouse to challenge crop trading giants like Cargill Inc.
While the deal has passed regulatory hurdles in Europe and Canada, and is expected to proceed in Argentina, subject to post-closing remedies, China remains the major holdout.
Bunge stated it is in “constructive dialogue” with Chinese officials, but the lack of formal approval has become a sticking point.
Sources close to the matter say Beijing’s reluctance is not necessarily tied to competition concerns but is reflective of broader geopolitical tensions with the US.
China’s commerce ministry and antitrust regulator have not responded to requests for comment.
Shein’s London IPO faces delays as US ramps up tariffs
Chinese-founded fast-fashion giant Shein is also facing fallout from US-China tensions.
The company is considering a shake-up of its US operations as tariffs on Chinese imports put its planned London IPO at risk, according to a Financial Times report.
The company’s American division, which accounts for around one-third of Shein’s $38 billion in annual revenue, is expected to come under strain with the imminent expiration of a key tax exemption known as “de minimis,” the report said.
The de minimis rule expired on Friday.
Reuters reported on Friday that Shein had also severed ties with communications firms Brunswick and FGS, both of which were supporting its IPO strategy in London.
Their contracts expired on April 30 and will not be renewed, sources confirmed, in what the report said was another sign that the flotation was not going as planned.
Though Shein has received clearance from Britain’s financial regulator, it still requires approval from Chinese authorities.
With regulatory uncertainty on both ends and a hostile trade environment, the IPO, initially expected in the first half of the year, is now likely to be pushed into the latter half of 2025.
Wave of IPO postponements signals deeper market anxiety
The ripple effect of US-China trade tensions is being felt across global financial markets, with a growing list of companies delaying IPO plans.
Firms like Klarna Bank AB, Medline, and StubHub Holdings Inc. have all shelved their listing efforts in recent weeks due to heightened volatility sparked by Trump’s tariff announcements on April 2.
Offerings from adtech group MNTN Inc. and insurer Ategrity Specialty Holdings were also on hold, it was reported.
Trading platform EToro Group Ltd., had in April reportedly paused its IPO ambitions, but according to a Bloomberg report on Friday, it is now considering launching its US initial public offering as soon as next week.
Sources cited in the report caution, however, that no final decision has been made.
If EToro proceeds, it would be the first among the group of delayed IPOs to move forward following the tariff turmoil.
But the broader picture remains bleak: protectionist trade policies and retaliatory measures from China are weighing heavily on companies with global exposure, disrupting both M&A deals and capital-raising efforts.
The post From Bunge’s Viterra deal to Shein’s IPO: US-China trade war derails major cross-border deals appeared first on Invezz
