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GATINEAU, Que. — The Competition Bureau says it is likely that Bunge Ltd.’s US$8.2-billion deal to acquire Viterra Ltd. would “substantially” reduce competition in the grain and canola oil markets.
In a report to Transport Minister Pablo Rodriguez, the bureau says the deal is likely to hurt competition in markets for grain purchasing in Western Canada as well as for the sale of canola oil in Eastern Canada.
It also says Bunge could influence the behaviour of G3 Global Holdings, a major competitor to Viterra. Bunge is a minority shareholder of G3 which operates grain elevators in many of the same regions as Viterra.
U.S.-based Bunge announced a deal last year to buy Viterra for US$8.2 billion in cash and shares.
Transport Canada has until June 2 to complete a public interest assessment and provide it to the minister.
The final decision regarding the proposed transaction will be made by the federal cabinet, based on advice from the minister.
This report by The Canadian Press was first published April 23, 2024.
The Canadian Press
