In an expansive move stirring regulatory concern, Bunge Ltd.’s $18 billion proposal to acquire global grain trader Viterra Ltd. has drawn intense scrutiny from Canada’s Competition Bureau. The deal, which was unveiled last June, may lead to adverse effects on grain farmers and refined canola oil markets across Canada, the bureau cautioned on Tuesday.
Grain Co.’s $18B Deal Raises Competition Flags For Canada: Comprehensive Review by Canadian Authorities
Canada’s Competition Bureau has formally expressed significant apprehensions regarding the potential consolidation of power in the grain and seed sectors. The agency relayed its findings to the Minister of Transport, sparking a public interest review initiated last year. The scrutiny focuses on the possible impacts such as reduced payments to farmers and increased prices for refined canola oil consumers.
Grain Co.’s $18B Deal Raises Competition Flags For Canada: Focal Points of Regulatory Concern
The bureau’s investigation has highlighted several critical areas of concern. There is a fear that the merger could diminish competition in the purchase of grain from farmers in Western Canada and affect the distribution of canola oil to Eastern Canadian customers who lack rail transport options.
