REPORTS have claimed two global grains giants are once again in merger talks.
If the merger proceeded it would create a behemoth valued at $US25 billion ($A38.3 billion) and create a serious rival for the world's other major grain businesses such as Cargill and Archer Daniels Midland.
The talks are between Canadian business Viterra and Bunge from the US.
Fellow grain giant Glencore holds a 50pc share in Viterra with Canadian pension funds holding the rest.
It is not the first time the two companies have been linked.
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In 2017 Viterra set out to buy out Bunge but the deal fell through, with Bunge rejecting the $US11 billion ($A16.9 billion) bid.
This time commentators say it is Bunge courting Viterra, however, similar to last time the two companies met, there will be significant competition issues that need to be overcome before the deal proceeds.
Viterra has a strong presence in Australia, in particular in South Australia where it is the dominant port operator and bulk handler.
It also a significant grain buyer in many parts of the country.
Bunge was formerly a relatively prominent player in Australian grain accumulation and also set up an export facility in Bunbury, WA, but has taken a lower key place in the market in recent years.
Given the relatively concentrated powers of major grain traders in staple crops such as wheat, corn and soybeans regulators across the world will be involved to see whether the deal would be anti-competitive.
Viterra has been busy in the mergers and acquisition space, purchasing US-based Gavilon from Japanese trading house Marubeni last year for $US1.1 billion, ($A1.69 billion).
Viterra, formerly known as Glencore Agriculture, made the headlines in 2017 for a failed takeover approach to Bunge, one of the giant names of global grain trading, then valued at $11 billion.
The company's Canadian head office was contacted but declined to comment.