GATINEAU, QC,
April 23,
2024 /CNW/ - The Competition Bureau has concluded
that the proposed acquisition of Viterra Limited (Viterra) by Bunge
Limited (Bunge) is likely to result in substantial anti-competitive
effects and a significant loss of rivalry between Viterra and Bunge
in agricultural markets in Canada.
The Bureau's concerns are outlined in a report submitted to
the Minister of Transport. The report will inform Transport
Canada's public interest review of the proposed transaction as it
relates to national transportation.
The Bureau determined that the transaction is likely to harm
competition in markets for grain purchasing in Western Canada, as well as for the sale of
canola oil in Eastern Canada.
The Bureau also found that Bunge could materially influence the
economic behaviour of G3 Global Holdings (G3), a major competitor
to Viterra. As a minority shareholder of G3, Bunge has access to
G3's confidential competitively sensitive information.
The Bureau's review considered a broad range of sources of
information. This includes:
- records, submissions, and data from the parties and G3;
- interviews with over 70 stakeholders; and
- the advice of two independent experts.
Transport Canada has until
June 2, 2024, to complete its public
interest assessment and provide it to the Minister. The Bureau's
participation in the public interest review process is ongoing.
The final decision regarding the proposed transaction will be
made by the Governor in Council (Cabinet) based on advice from the
Minister of Transport.
Quick facts
- Viterra and Bunge are two of Canada's most significant agriculture
companies, with operations in grain purchasing, processing, and
export/marketing.
- On August 15, 2023, Viterra and
Bunge notified the Minister of Transport that Bunge proposes to
acquire Viterra.
- On September 26, 2023, the
Minister of Transport started a public interest review of the
proposed transaction under subsection 53.2(2) of the Canada
Transportation Act (CTA).
- As part of any such public interest review, the Commissioner of
Competition is required to provide a report to the Minister on any
competition concerns that may occur as a result of the
transaction.
- Under the CTA, the Commissioner is also to provide an
assessment to the Minister of the adequacy of any undertakings that
may be proposed by the merging parties to address competition
concerns raised in his report.
Related products
- Report to the Minister of Transport
Associated links
- Public Interest Assessment of Bunge's Proposed Acquisition of
Viterra
- Statement by Transport Minister Rodriguez on the proposed
acquisition of Viterra Limited by Bunge Limited
- Guidelines for Mergers and Acquisitions involving
Transportation Undertakings
- Competition Bureau Merger Review Process Guidelines
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The Competition Bureau is an independent law enforcement agency
that protects and promotes competition for the benefit of Canadian
consumers and businesses. Competition drives lower prices and
innovation while fueling economic growth.
SOURCE Competition Bureau