Ottawa approves Bunge acquisition of Regina based Viterra

The federal government has aproved Bunge's aquisition of Viterra.

The federal government has approved a major agricultural business deal involving Regina-based Viterra.

Bunge Ltd.’s $8.2 billion acquisition of Viterra has been in the works for some time, raising competition concerns in 2024.

At the time, Canada’s Competition Bureau said the deal was “likely to result in substantial anti-competitive effects and a significant loss of rivalry” in a number of grain and canola oil markets across Canada.”

In a release outlining the deal’s approval Tuesday evening, the federal government said the deal does come with several terms and conditions to quell competition concerns and “encourage investment in Canada and secure economic benefits for Canadians.”

“The terms and conditions help ensure that the acquisition will not have a negative impact on competition in Canada’s grain and oilseed sector, notably for grain purchasing in Western Canada and the sale of canola oil in Central and Atlantic Canada,” the release said. “Farmers will have a wide range of competitive options when they sell their canola and other crops, as well as continue to receive fair prices for their produce.”

The terms include Bunge’s selloff of six grain elevators in western Canada, strict and legally binding controls on Bunge’s stake in G3 and a price protection program for certain purchasers of canola oil.

Additional terms include a commitment for Bunge to invest at least $520 million in Canada over the next five years and retain Viterra’s head office in Regina for at least five years. A full list of terms is available on the Orders in Council online database.

“This decision underscores the importance of promoting economic growth in Canada, while maintaining robust oversight to protect competition and the public interest,” said Transport and Internal Trade Minister Anita Anand in the release. “We are committed to supporting a strong economy, including in the agricultural, and transportation sectors.”

The two companies have said previously they are confident the transaction will lead to considerable benefits to Canada.

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Bunge Ltd. is a global agribusiness and food company headquartered in St. Louis, Missouri. Originally incorporated in Switzerland, the company boasts 23,000 employees across 300 facilities in 40 countries.

Viterra is an international agribusiness that was formed in 2007 when the Saskatchewan Wheat Pool merged with Agricore United. Headquartered in Regina, the company of 16,000 workers handles and markets grain, along with other agricultural products across 37 countries.

With files from David Prisciak