The AgriPost
May 31, 2024
Competition Bureau Identifies Areas of Concern with Proposed Bunge-Viterra Merger
Seeding Nearly Complete Across Western Canada By Elmer Heinrichs
The Bureau expressed concerns about Bunge’s ability to influence G3 Global Holdings, a significant competitor to Viterra, due to Bunge’s minority shareholding and access to confidential information. Submitted photo
By Harry Siemens The Competition Bureau in Canada has raised significant concerns regarding Bunge Limited’s proposed acquisition of Viterra Limited in Canada’s agricultural markets. According to the Bureau’s analysis, this acquisition will likely lead to substantial anticompetitive effects and a significant rivalry loss between Viterra and Bunge. In a detailed report submitted to the Minister of Transport, the Bureau outlined its
concerns, which will play a crucial role in Transport Canada’s public interest review of the transaction. The national transportation implications are of particular concern and must be noticed. The Bureau’s assessment identified potential harm to competition in key markets, including grain purchasing in western Canada and the sale of canola oil in eastern Canada. Additionally, the Bureau expressed concerns
about Bunge’s ability to influence G3 Global Holdings, a significant competitor to Viterra, due to Bunge’s minority shareholding and access to confidential information. These findings underscore the importance of maintaining fair competition and market integrity in Canada’s agricultural sectors. They also highlight the need for careful consideration and scrutiny of the proposed acquisition to protect the best interests of consumers and industry participants.
Keystone Agricultural Producers (KAP) responded to the Competition Bureau’s report on Bunge’s proposed acquisition of Viterra. “Today’s report from the Competition Bureau raises the concerns that KAP has shared with the Competition Bureau, as well as other impacted stakeholders involved in this review,” said KAP general manager Brenna Mahoney. “We are currently analyzing the complete report to determine how to use this data Continued on Page 2...
For 2024-25, assuming normal weather conditions and a return to trend yields, production and supply for most crops are expected to increase with total principal field crop production returning to normal levels at 94.4 million tonnes, 5 per cent and 4 per cent higher than the five-year and ten-year average, respectively. Despite near-normal to above-normal precipitation across most of the Prairie growing region in April, the most significant climate-related risk to realizing a return to trend yields remains widespread dry conditions across most of western Canada as reported in the Canadian Drought Monitor as of April 30, 2024. Planting is underway on the Prairies and recent precipitation has led to a much-needed improvement in topsoil moisture conditions for most of the region, with the exception of the Peace region. Despite some relief, subsoil moisture remains well below normal due to multi-year precipitation deficits and, as such, timely rains will be critical during the growing season to reach yield potential. Seeding of spring cereals is virtually finished in eastern Canada, while corn and soybean planting has experienced delays due to rain and cool weather. Uncertainty in the world’s grain markets remains above normal because of Russian aggression against Ukraine and other ongoing geopolitical risks.