“The proposed acquisition is poised to substantially lessen competition and erode the existing rivalry between Viterra and Bunge in Canada’s agricultural market,” the bureau stated in its analysis.
Additional worries have been raised about Bunge’s minority stake in G3 Global Holdings, a direct competitor to Viterra. The bureau is apprehensive about the potential for sharing sensitive competitive information that could undermine market competition.
Defensive Stance from Bunge and Viterra
In response to the bureau’s report, Bunge and Viterra issued a joint statement underscoring that the concerns were localized and not reflective of broader market dynamics. The companies argued that they serve complementary markets with a healthy number of competitors, and they are optimistic about addressing the regulatory concerns collaboratively.
Economic Implications of the Deal
St. Louis-based Bunge’s acquisition of the Netherlands-based Viterra, involving a mix of stock and cash totaling $18 billion and including the assumption of $9.8 billion in Viterra debt, aims to bolster global agricultural supply chains. Bunge believes this strategic expansion will not only meet the demands of complex global markets but also enhance Canada’s agricultural prowess by creating well-paying jobs and strengthening supply chains.
