(Reuters) -Bunge Global’s $34 billion merger with Glencore-backed Viterra is being stalled by trade tensions between the United States and China, Bloomberg News reported on Friday, citing people familiar with the matter.

"We are in the final stage of regulatory approval. We express our continued gratitude for the constructive dialogue with Chinese government officials throughout the regulatory review process," Bunge (NYSE: BG ) told Reuters in an emailed statement.

The merger was first announced in 2023. If finalized, it will create a global crop trading and processing giant closer in scale to chief rivals Archer-Daniels-Midland and Cargill.

Regulatory approval in China is among the last remaining hurdles to the deal’s closing.

Bunge has said it has obtained most global approvals required for the merger - which was initially expected to close in mid-2024 - including in the European Union and Canada.

Bunge executives and advisers are growing increasingly concerned that the political rift between the two countries will hold up the process further, according to the report.

Bunge CEO Greg Heckman traveled to China a number of times for talks with the authorities, the Bloomberg report said. It also said Chinese regulators have flagged concerns that the merger would increase industry concentration and potentially impact Beijing’s food security interests.

The relevant regulators are conducting a careful compliance review given the deal’s significance, according to the report.

Viterra did not immediately respond to a Reuters request for comment.