A series of key decisions regarding Bunge’s proposed acquisition of Viterra are expected to be made in the coming weeks as antitrust regulators and government authorities around the world finish considering whether to approve the merger of the multinational grain companies and what the requirements for approval would be.
In Canada, the federal Department of Transport completed its public interest assessment of the transaction on June 2. The Department of Transport’s investigation is based in part on a Competition Bureau investigation. Published in AprilThe department said it had “substantial competition concerns” about the deal, including the possibility that it could lead to lower canola prices for some Western Canadian farmers.
Agricultural groups have also raised competition concerns about the deal, with the Saskatchewan Agricultural Producers Association Demanding that the federal government divest Bunge If the deal is approved, it will acquire a 25% stake in grain handler G3 and sell some of Viterra’s assets.
As of June 18, Laurent de Casanove, spokesman for Transport Minister Pablo Rodriguez, told RealAgriculture that the minister is committed to reviewing the Ministry of Transport’s assessment “as soon as possible.”
The minister’s office has not provided further details about what is going on behind the scenes, but Rodrigues is understood to be in discussions with the Competition Bureau chief. Messrs. Bunge and Viterra will have the opportunity to address the concerns raised and clarify what steps they are prepared to take. Rodrigues will then make a formal recommendation to federal cabinet whether the deal should be approved as proposed, approved with conditions, or rejected.
The European Commission’s antitrust authority recently The deadline was July 18th Industry sources said the companies had hoped to gain approval in Canada before the EU deadline.
The acquisition by Bunge Announcement in June 2023 And it values Viterra, which was formed in 2007 when the Saskatchewan Wheat Pool acquired Agricore United, at about $8.1 billion.
Regulatory approval is required in more than 20 countries, but the companies have repeatedly said they intend to close the transaction in mid-2024.
If the deal falls through for regulatory reasons, Bunge would be required to pay Viterra a $400 million termination fee, according to a filing with the Securities and Exchange Commission.
