Canada approves Bunge-Viterra US$18B merger with conditions to protect competition
CANADA – The Canadian government has officially approved Bunge Global SA’s US$18 billion acquisition of Viterra Ltd., an 18-month-old deal between two agribusiness giants.
The approval follows a detailed public assessment under the Canada Transportation Act, which included an April 2024 report from Canada’s Competition Bureau.
The report highlighted concerns that the merger could lead to “substantial anticompetitive effects” in Canada’s agricultural markets, prompting further review by the minister of transport.
The acquisition, first announced in June 2023, saw St. Louis-based Bunge Global SA agreeing to purchase Rotterdam-based Viterra, which has been owned by Switzerland’s Glencore PLC since 2012.
The deal, approved by both companies’ boards, includes US$6.2 billion in Bunge stock, US$2 billion in cash, and the assumption of US$9.8 billion in Viterra’s debt.
Regulatory delays, however, pushed the expected closure date from mid-2024 to 2025. While Bunge shareholders approved the deal in October 2023, European Commission approval only came in August 2024. Canada’s conditional approval represents a significant milestone in finalizing the transaction.
Anita Anand, Canada’s Minister of Transport and Internal Trade, announced the approval on January 14, emphasizing that the decision comes with “extensive terms and conditions” to ensure fair competition and economic benefits for Canada.
Key among the stipulations are measures designed to protect competition in Canada’s grain and oilseed sectors.
According to Transport Canada, the conditions focus on grain purchasing in Western Canada and canola oil sales in Central and Atlantic Canada. To maintain market balance, Bunge is required to divest six grain elevators in Western Canada and retain Viterra’s head office in Regina, Saskatchewan, for a minimum of five years, safeguarding local jobs.
Strict safeguards for fair pricing and investments
Additional measures include a price protection program for certain canola oil purchasers in Central and Atlantic Canada and legally binding controls over Bunge’s minority ownership stake in G3, a Winnipeg-based operator of grain elevators and export terminals.
These controls aim to prevent Bunge from influencing G3’s pricing or investment decisions.
To further benefit Canada, Bunge must invest at least US$520 million in the country over the next five years. The government has also outlined over 20 additional conditions designed to ensure farmers have competitive options when selling canola and other crops, enabling them to secure fair prices for their produce.
“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,” Anand stated.
Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
