The federal government on Tuesday said it will review the planned merger between agri-businesses Viterra and Bunge to ensure fair competition at Canadian ports.
The statement from Minister of Transport Pablo Rodriguez said both companies hold ownership interests in Canadian port terminals and that healthy competition is necessary to maintain equal access and fair pricing for all port users - especially Canadian farmers.
“Given this transaction is of significant national interest in Canada’s transportation sector and the broader supply chain, it will be reviewed under the mergers and acquisitions provisions of the Canada Transportation Act,” Rodriguez said. “Goods must continue to move smoothly, and our supply chain must continue to grow stronger.”
Bunge and Viterra announced plans to merge back in June, creating an agricultural powerhouse worth about $34 billion. Bunge is the world’s largest oilseed processor, while Viterra is one of North America’s largest grain handlers.
Transport Canada has up to 250 days, or until June 2, 2024, to complete the public interest assessment. At the time the merger between the two companies was originally announced, Viterra and Bunge said the deal was expected to close “mid-2024.”
According to the company website, Viterra operates six port facilities in its asset network that allows it to ship grains, oilseeds and pulses to customers in 70 countries. This includes the Cascadia and Pacific Terminals at the Port of Vancouver, Prince Rupert Grain, two facilities in Thunder Bay, and one in Montreal.
Source : Syngenta.ca