The Canadian government has officially approved Bunge Ltd.'s US$8.2 billion acquisition of Viterra Ltd., a decision announced in January 2025. This significant development in the agricultural sector comes with conditions to mitigate concerns over competition, particularly in the grain and canola oil markets. The Competition Bureau had earlier reported in April 2024 that the deal posed potential threats to market competition.
Bunge Ltd., recognized as the world's largest oilseed processing company, has agreed to several stipulations to address these concerns. Transport Canada has imposed stringent and legally binding controls regarding Bunge's 40% minority ownership stake in G3, ensuring the company cannot influence G3's pricing or investment decisions. This measure aims to maintain competitive integrity within the industry.
Viterra, which operates over 80 facilities across Canada, was previously acquired by Swiss commodities giant Glencore in 2012 for $6.1 billion. Glencore has since divested part of its holdings, selling a 40% stake to the CPP Investment Board and nearly 10% to the B.C. Investment Management Corp. These transactions paved the way for Bunge's acquisition.
A critical condition of the acquisition is for Bunge to retain Viterra’s head office in Regina for at least five years, ensuring a continued local presence. Additionally, Bunge is required to invest a minimum of $520 million in Canada within the same timeframe, further emphasizing its commitment to the Canadian market.
The concerns initially raised by the Competition Bureau were addressed through these measures, which were included in the report submitted to then-transport minister Pablo Rodriguez in April 2024. The report highlighted potential risks to competition, necessitating careful regulatory oversight.
