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.
