Canada Okays Bunge Global’s Acquisition of Viterra Limited

The Canadian government has approved the acquisition of Viterra Limited by global agri-business Bunge Global SA in a deal valued around $34 billion.

The announcement was made by Canada’s Minister of Transport and Internal Trade Anita Anand and the decision, firmly rooted in Canada’s public interest, comes with extensive terms and conditions to protect competition, encourage investment in Canada and secure economic benefits for Canadians.

The terms and conditions help ensure that the acquisition will not have a negative impact on competition in Canada’s grain and oilseed sector, notably for grain purchasing in Western Canada and the sale of canola oil in Central and Atlantic Canada.

Farmers will have a wide range of competitive options when they sell their canola and other crops, as well as continue to receive fair prices for their produce.

The major terms and conditions of the merger include Bunge’s divestiture of six grain elevators in Western Canada to maintain competitive options for farmers in the region; strict and legally binding controls on Bunge’s minority ownership stake in G3, another important grain company, to ensure Bunge cannot influence G3’s pricing or investment decisions; a price protection program for certain purchasers of canola oil in Central and Atlantic Canada to safeguard fair pricing and market stability;

A binding commitment from Bunge to invest at least $520 million in Canada within the next five years, which will foster economic growth, productivity and job creation; and over 20 other conditions intended to enhance the public interest benefits of the acquisition. A full list of the terms and conditions is available on the Orders in Council online database.

These comprehensive measures address the concerns raised during the public interest assessment of the acquisition under the Canada Transportation Act.

Anita Anand said that this decision underscores the importance of promoting economic growth in Canada, while maintaining robust oversight to protect competition and the public interest.

“We are committed to supporting a strong economy, including in the agricultural, and transportation sectors,” she added.

Concerns Exist

Meanwhile, the Agricultural Producers Association of Saskatchewan (APAS) weighed in on the approval of the Bunge-Viterra merger.

APAS said that while the decision seems to partially address farmer’s original concerns about potential negative impacts of the merger, the effectiveness of the imposed measures will need to be evaluated over time to ensure they address the concerns.

APAS President Bill Prybylski said that while they acknowledged the government’s efforts in addressing the concerns raised by Saskatchewan farmers, it was essential that these conditions were more than just words on paper.

Farmers need real action that translate into enhanced competitiveness and sustainability in the grain industry, he said.

APAS also said that few things were omitted from the merger decision, such as a projected $800 million financial loss to farmers or control over 45% of Vancouver Port’s capacity opting instead for conditions like independent director nominations to mitigate anti-competitive risks and Bunge’s involvement in the Regina canola crush project, focusing instead on general competition and operational measures.

The farm group acknowledged that the strategies implemented will increase competition in the canola sector and limiting Bunge’s grain operations in G3 indirectly safeguards farmers against fluctuating margins, high input costs, and ensure a competitive, transparent supply chain.