Investing.com– Canada approves $34 billion merger between Bunga Limited (NYSE:) and Viterra, a Glencore A company backed by PLC (LON:), subject to special conditions aimed at preserving market competition.
To address anti-competitive concerns, Bunge must divest itself of six grain elevators in western Canada. In addition, the company must invest at least C$520 million in Canada over the next five years, Canada’s Transport Ministry said in a statement.
Canada’s Minister of Transport and Internal Trade Anita Anand emphasized that this decision balances economic growth with strong oversight to protect competition and the public interest.
The Competition Bureau has previously identified potential anti-competitive effects in certain grain and canola markets, particularly in Western Canada. Concerns have also been raised about Bunge’s minority stake in Viterra competitor G3 Global Holdings, which could affect market dynamics.
“Farmers will have a wide range of competitive options when selling their canola and other crops, as well as continue to receive fair prices for their products,” the ministry said in a statement.
Despite these challenges, Bunge and Viterra expressed confidence that the merger will benefit Canada’s agricultural sector. They plan to improve supply chain resilience and maintain Canada’s leadership in agriculture by increasing investment and job opportunities.
The agreement has already been approved by the European Commission and is now awaiting China’s approval.
