The integration of Bunge and Viterra after regulatory approval of the merger was given earlier this year has been smooth according to the heads of Bunge Canada and of the union representing workers at the main office in downtown Regina.
The federal government approved the merger in January of this year and China was the last country to approve it in June, completing a process that began in 2023 when Bunge announced the acquisition of Viterra for $8.2 billion.
"Integration is going really well," said Kyle Jeworski, CEO of Bunge Canada, "We're talking about two companies that have been around for a long period of time. Viterra has over 100 years here in Canada; Bunge has been around for over 200 years – there's not many companies that you can actually find that have been around for over 200 years, so in terms of stability they've been a very stable company, they know the ag industry very well."
Jeworski also noted the two companies complement each other.
"(Viterra's) focus in Canada, we're very close with the Western Canadian farmer. We've got inland elevators, port facilities, a very strong distribution network. But when you look at Bunge, very much of the downstream focus of Canada, so focused on the end-use customer so understanding exactly what your large-scale customers want from a food product. It's an area that Viterra did not have expertise in Canada, so really connecting two companies that are on different ends of the value stream."
The Competition Bureau of Canada rolled out numerous conditions in order for the merger to proceed, such as keeping the Viterra Head Office in Regina for at least five years, Bunge to invest $520 million in Canada within the next five years to foster economic growth and job creation, and for Bunge to divest in six grain terminals in Western Canada.
Asked if any changes to the roles of employees were made from the merger, Jeworski said there wasn't any significant changes. He added the head quarters in Regina is here to stay.
"Regina will be our Canadian head quarters and I think its important to remind people that we've been in the same building since 1924," he said, "We've built up a lot of talent and a lot of skill set that's very difficult for us to replicate in any other area so I think that bodes very well for Canada and for Regina. Also, as I mentioned earlier, we're in two different ends of the value stream in Canada so the jobs that are here in Regina support our core grain business and we'll continue to support our core grain business."
The same feeling is shared by Steve Torgenson, General Secretary of the Grain and General Services Union (GSU) which represents Head Office employees in Regina.
"We haven't seen anything significant happen for our members. We are sort of business as usual," Torgenson said, "After the name changed on the building and the signs went up there was a few changes in middle management – the organizational structure – but otherwise nothing too directly that has affected our members so far."
Torgenson said they are watching for developments on Bunge selling one of its grain elevators in the Tisdale area, as per the conditions set by the Competition Bureau. He said the grain terminal has GSU members.
"I'm not aware of any sale being imminent but our members are currently working there, just waiting for that to happen." he said, adding they're also observing Bunge's $27 million offer to purchase North West Terminal's grain elevator in Unity to see how it gets integrated into the bargaining unit.
