Canada Approves Bunge’s $34 Billion Merger with Viterra with Conditions
OTTAWA – Canada has approved Bunge’s $34 billion merger with Viterra, with conditions, clearing one of the final obstacles for the global agriculture deal. The merger, which is unprecedented in dollar value, is expected to create a global crops trading and processing giant.
The conditions include Bunge’s divestiture of six grain elevators in Western Canada and a commitment to invest at least $362 million in Canada over the next five years. The approval also requires strict and legally binding controls on Bunge’s minority stake in G3, a Saudi-owned grain company, to ensure it cannot influence G3’s pricing or investment decisions.
The merger, announced in 2023, would make the combined company, which would account for a third of Western Canada’s elevator capacity, better equipped to benefit from anticipated growth in demand for soybean and canola oil to produce biofuels.
Canada’s antitrust watchdog had raised concerns about the deal, saying it could harm competition for grain purchasing in Western Canada and for selling canola oil in Eastern Canada. However, the transport ministry said its conditions address these concerns and promote economic growth while ensuring fair pricing and market stability.
“This decision underscores the importance of promoting economic growth in Canada, while maintaining robust oversight to protect competition and the public interest,” said Transport Minister Anita Anand. The deal is expected to close in early 2025.