Canada’s competition concerns about U.S. agribusiness Bunge’s planned takeover of rival Viterra sets the stage for the companies to sell some assets to close the deal, experts said.The Competition Bureau in Canada, a major grain and canola exporter, said on Tuesday it was worried about reduced competition to buy farmers’ crops in Western Canada and to sell canola oil in Eastern Canada if the deal proceeds.
“These assets are really valuable,” said Derek Brewin, an agribusiness professor at the University of Manitoba. “I think there will be competition from any of the Canadian buyers.” France-based Louis Dreyfus, which is expanding its Canadian canola-crushing capacity, might be a logical buyer of both assets, Brewin said.Richardson International and Cargill also crush canola and compete with Viterra to handle farmers’ grain.Regulators in 13 jurisdictions, including the U.S., the European Union, Brazil and China, have not yet approved the deal, Bunge’s Heckman said on Wednesday. But he still expects the transaction to close by the middle of this year.
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