The Canadian government is reportedly reviewing the planned acquisition by global agribusiness giant Bunge of Glencore-backed Viterra, according to the country's transport minister, cited by Reuters.
Likewise, if the merger goes ahead, it will create one of the largest agribusiness companies in the world, according to the September 27 report.
As part of the review, the country's Ministry of Transport would launch a public interest assessment of the proposed acquisition, to be completed by June 2, 2024, said Transport Minister Pablo Rodriguez.
“Both companies hold equity interests in port terminals throughout our country,” Rodriguez said on September 27.
“Healthy competition in the transportation sector is necessary to ensure fair prices and access for users, especially Canadian farmers. At the same time, the review of this transaction, which is of great national interest to the transportation sector and the broader supply chain, will follow the mergers and acquisitions provisions of the Canada Transportation Act.”
A Bunge spokesperson told Reuters the company hopes to work with Transport Canada to show that any impact the merger may have on transportation will be beneficial to Canada. In fact, the spokesperson said in the Reuters report: “We remain unchanged in our expectation of completing the transaction in mid-2024.”
Canada blocks US$ 18 billion merger between Bunge and Viterra
Announced by Bunge and Viterra in June, the US$18 billion deal would bring the combined company closer in scale to global agribusiness leaders ADM and Cargill, World Grain wrote on September 27. Earlier, after the announcement, Canada's Competition Bureau said it would review the merger.
Following the announcement, Canada's Competition Bureau said it would review the merger.
Viterra is a subsidiary of Glencore PLC, a global leader in commodities trading. Its headquarters are in Switzerland. Since 2012, the company has operated a vast network of agricultural assets. This network includes storage, processing and transportation facilities in 37 countries. Missouri-based Bunge is a leader in soybean processing. Additionally, it provides special vegetable oils and fats. The company operates approximately 300 facilities in more than 40 countries.
In the United States, Viterra expanded its grain buying and selling business. This follows the acquisition of the grains and ingredients business of US oilseeds and ingredients company, Gavilon, last year. Additionally, the merger would strengthen Bunge's grain export and oilseed processing businesses in the United States. This information was reported by Reuters at the time of the acquisition.
Source: Oils & Fats International
