Agrium’s Crop Production Services has reached a deal with the Competition Bureau to sell four retail outlets in Alberta to address concerns about reduced fertilizer competition resulting from its proposed purchase of Andrukow Group Solutions.
CPS announced an agreement-in-principle back in April to purchase Andrukow Group and all of its assets, which includes 17 crop input retail stores in Alberta, located at Amisk, Camrose, Clyde-Flatlander, Daysland, Dewberry, Gaudin (Fort Saskatchewan), Mundare, Paradise Valley, Provost, Rycroft, Ryley, Sedgewick, St. Paul, Strathmore, Viking, Wainwright and Waskatenau, and one site in Marsden, Saskatchewan.
The Competition Bureau on Thursday said the terms of a consent agreement with CPS require the company sell the Andrukow retail sites in Sedgewick and Wainright, as well as the CPS retail locations in St. Paul and Marwayne, Alberta.
With both companies selling fertilizer, seed and crop protection products, the Bureau says it interviewed market participants, including farmers and competing retailers. It also reviewed documents and information provided by the parties and third parties; and analyzed industry financial and transaction level data:
“The Bureau concluded that the proposed transaction would lead to a substantial lessening or prevention of competition in the retail supply of urea, UAN or anhydrous ammonia in a number of local markets in Alberta and Saskatchewan. The Bureau believes that the consent agreement entered into with CPS to divest four retail stores resolves these concerns.”