Canada’s Competition Bureau said it had identified major competition concerns around the proposed merger between U.S. grains merchant Bunge and Glencore-backed Viterra. In a statement, the bureau said the deal was “likely to result in substantial anti-competitive effects and a significant loss of rivalry between Viterra and Bunge in agricultural markets in Canada.” It also determined the transaction was likely to harm competition in markets for grain purchasing in Western Canada, as well as for the sale of canola oil in Eastern Canada.
The report was sent to Canada’s transport ministry, which has until June 2 to review the deal. The federal Canadian government will take a final decision.
The bureau said last June it would review the merger, which would create an agricultural trading giant worth about $34 billion, including debt. The deal would bring the combined company closer in scale to leading rivals ADM and Cargill. Bunge has filed for regulatory approvals for the merger in major jurisdictions in North America, South America, Europe and China.
