Bunge and Viterra is pleased the Competition Bureau of Canada completed its report on the proposed merger between the two grain companies.
In a joint statement on Tuesday, the companies acknowledged the Bureau had no concerns regarding competition for grain purchasing in Eastern Canada and most of Western Canada, specifically for port terminal operations, for meal sales, and for sales of the vast majority of downstream refined and specialty oil products.
Both also acknowledged the Bureau’s concerns of reduced competition for purchasing canola in areas around Bunge’s Altona, Manitoba and Nipawin, Saskatchewan canola crushing facilities, concerns related to canola oil sales to a small segment of customers in Eastern Canada, and Bunge’s minority stake in G3.
The companies believe those concerns are misplaced and will provide information to Transport Canada and the Bureau to address those points.
“We are pleased the regulatory process is advancing and are confident the transaction will yield considerable benefits to Canada. These will include stronger supply chains in uncertain global markets, maintaining Canadian leadership in agriculture and food by increasing capacity to invest, and employing thousands of Canadians in well-paying jobs.” Bunge and Viterra said in the joint statement.
Once the regulatory approvals are obtained the merger is expected to close mid-2024.
Farm groups such as the Agricultural Producers Association of Saskatchewan have shared concerns about the merger, mainly reduced competition for grain buying which would impact the bottom line of farmers.
