Proposed Bunge-Viterra merger examined by Competition Bureau
The Competition Bureau has stated the proposed acquisition of Viterra Limited (Viterra) by Bunge Limited (Bunge) would have ‘substantial anti–competitive effects in agricultural markets in Canada.’
The Bureau’s concerns are outlined in a report submitted to the Transport Minister Pablo Rodriguez. 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 of Viterra. As a minority shareholder of G3, Bunge has access to G3’s confidential competitively sensitive information.