By Alice McFarlane

Proposed Bunge-Viterra merger examined by Competition Bureau

Apr 24, 2024 | 10:17 AM

The Competition Bureau has stated the proposed acquisition of Viterra Limited (Viterra) by Bunge Limited (Bunge) would have ‘substantial anti–competitive effects in agricultural markets in Canada.’

The Bureau’s concerns are outlined in a report submitted to the Transport Minister Pablo Rodriguez. The report will inform Transport Canada’s public interest review of the proposed transaction as it relates to national transportation.

The Bureau determined that the transaction is likely to harm competition in markets for grain purchasing in Western Canada, as well as for the sale of canola oil in Eastern Canada.

The Bureau also found that Bunge could materially influence the economic behaviour of G3 Global Holdings (G3), a major competitor of Viterra. As a minority shareholder of G3, Bunge has access to G3’s confidential competitively sensitive information.

Agricultural Producers Association of Saskatchewan President Ian Boxall said this confirms what his organization has been saying since last June.

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“With less competition it becomes a ‘take it or leave it’ type of thing, especially where I farm at Tisdale, Sask. in the northeast with Bunge and three Viterra’s,” he said. “It reduces the competition here and there’s other areas that are in the same boat.”

The Bureau’s review considered several sources of information including records, submissions, and data from the parties and G3, interviews with over 70 stakeholders, and the advice of two independent experts.

Transport Canada has until June 2 to complete its public interest assessment and provide it to the Minister. The Bureau’s participation in the public interest review process is continuing.

The final decision regarding the proposed transaction will be made by the Governor in Council (Cabinet) based on advice from the Transport Minister.

As part of a public interest review, the Commissioner of Competition is required to provide a report to the Minister on any competition concerns that may occur because of the transaction.

Under the CTA, the Commissioner will provide an assessment to the minister of the adequacy of any undertakings that may be proposed by the merging parties to address competition concerns raised in his report.

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alice.mcfarlane@pattisonmedia.com

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