Competition Bureau says deal could have reduced choice and increased prices
The Competition Bureau of Canada has welcomed the decision by Nortera and B&G Foods Canada to abandon a proposed acquisition involving well-known vegetable brands sold across the country.
The announcement came after the Bureau conducted an investigation and concluded that the transaction was likely to reduce competition in Canada's vegetable market. According to the Bureau, the merger could have resulted in higher prices and fewer product choices for consumers.
Jeanne Pratt, Interim Commissioner of Competition, stated that the decision not to proceed with the transaction is an important outcome for Canadian consumers and the food industry. She noted that maintaining competition in the marketplace helps keep prices lower and ensures shoppers continue to have access to a wide variety of products.
The proposed acquisition involved Nortera purchasing B&G Foods Canada's vegetable business, which includes the Green Giant and Le Sieur brands. Both companies play significant roles in Canada's canned and frozen vegetable sector.
Nortera is a major processor, marketer, and seller of canned and frozen vegetables in Canada. The company offers products under several brands, including Del Monte and Arctic Gardens. B&G Foods Canada markets and sells vegetables through the Green Giant and Le Sieur brands, which are familiar to many Canadian consumers.
The Competition Bureau carefully reviewed the proposed deal to understand its possible effects on the market. After examining the transaction, investigators determined that the acquisition could decrease competition in the wholesale supply of certain canned and frozen vegetables.
Officials expressed concern that less competition could result in increased prices for retailers and consumers. The Bureau also warned that fewer competitors in the market could reduce product variety, limiting options available on grocery store shelves.
Canned and frozen vegetables are important food products that many families purchase regularly. Because they are everyday grocery staples, the Bureau said protecting competition in these markets is essential. Healthy competition encourages businesses to improve their products, offer competitive pricing, and respond to consumer needs.
The Bureau emphasized that effective merger review is one of the most important tools for protecting competition in Canada. Before major transactions move forward, the agency evaluates whether they could negatively affect consumers or businesses.
On August 19, 2026, the Bureau asked the Competition Tribunal to block the proposed acquisition. Officials believed the deal would likely harm competition in the market for certain canned and frozen vegetables. Following that action, Nortera and B&G Foods Canada jointly decided not to proceed with the transaction.
The Bureau described the outcome as a positive example of merger enforcement working as intended. By reviewing transactions and taking action, when necessary, competition authorities aim to ensure Canadian markets remain open and competitive.
Maintaining strong competition is especially important in the food sector, where consumers are highly sensitive to changes in prices and product availability. Government officials noted that competition can help support affordability while encouraging companies to continue innovating and improving their offerings.
The Competition Bureau's mandate includes reviewing mergers and assessing whether they are likely to substantially lessen or prevent competition in Canada. When concerns arise, the Bureau can challenge transactions and seek legal action through the Competition Tribunal.
Looking ahead, the Bureau said it will continue monitoring future mergers and acquisitions across industries, including agriculture and food. Officials stressed that protecting competitive markets remains a priority and that they will act when they believe consumers could be harmed.
The cancellation of the Nortera and B&G Foods Canada transaction highlights the important role of competition oversight in Canada's food industry. For consumers, the decision is expected to help preserve product choice and support fair competition in the canned and frozen vegetable market.
Photo Credit: Nortera