Competition Bureau releases report identifying substantial competition concerns with Bunge's proposed acquisition of Viterra

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.

• 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.

• Report to the Minister of Transport

• 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