Competition review set after Viterra, Bunge sign agreement to create global agribusiness giant

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The federal Competition Bureau says it will be reviewing an US$8.2\u002Dbillion merger between Saskatchewan\u002Dbased Viterra Ltd. and U.S. company Bunge Ltd. that will create a global agricultural giant in an industry that has already seen a significant amount of consolidation in recent years.

Viterra itself was acquired by Glencore in 2012 for $6.1 billion. Glencore later sold a 40 per cent stake in the company to CPP Investments and a nearly 10 per cent stake to B.C. Investment Management in 2016.

“Should we determine that the proposed transaction is likely to harm competition, we will take appropriate action.” “Our mandate is to support competitive markets for our farmers, so as more details emerge, we’ll of course be looking to study the impacts of the merger,” she said in an interview.Under the terms of the agreement, Viterra’s shareholders will receive 65.6 million Bunge shares, valued at a total of about US$6.2 billion, and about US$2.0 billion in cash. Bunge will also assume US$9.8 billion of Viterra debt.

“The combination of Bunge and Viterra significantly accelerates Bunge’s strategy, building on our fundamental purpose to connect farmers to consumers to deliver essential food, feed and fuel to the world,” Bunge CEO Greg Heckman said in a news release.“This further enables us to offer innovative solutions and open additional pathways for our customers,” Viterra CEO David Mattiske said.

 

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