The Canadian government is giving the green light to Bunge's US$8.2 billion acquisition of Viterra, with a series of conditions.
The two multi-national grain companies originally announced their plan to combine operations under the Bunge banner in June 2023.
Approval by the Canadian government was communicated in an order-in-council published on January 14th, 2025.
The decision had been sitting on the federal transport minister’s desk since Transport Canada concluded its review in June 2024 under previous Transport Minister Pablo Rodriguez, who resigned and was replaced by Anita Anand in September 2024.
The Canadian Competition Bureau and farm groups had raised concerns that the combination of the two large crop handlers would hurt competition and farmgate revenues. The Agricultural Producers Association of Saskatchewan (APAS), for example, had asked the federal government to force Bunge to sell its 25 per cent stake in fellow grain handler G3 and certain Viterra assets if the deal was allowed to proceed.
According to Transport Canada and order-in-council, the approval is contingent on the following measures:
- Sale of six grain elevators that purchase canola seed near Bunge's canola crush plants at Altona, Man. and Nipawin, Sask. (Altona vicinity — Viterra elevators at Fannystelle, Tucker, Beausejour, and Winnipeg “Coulter." Nipawin vicinity — Viterra elevator at Valparaiso and Bunge elevator at Dixon). Bunge is also not allowed to acquire any assets for sourcing canola seed within 250km of both crush plants for two years;
- Strict and legally binding controls on Bunge’s minority ownership stake in Saudi-owned G3 to prevent Bunge from influencing G3’s pricing or investment decisions;
- A price protection program for certain purchasers of bulk canola oil in Central and Atlantic Canada;
- Retaining Viterra/Bunge Canada head office in Regina for at least five years, with a head count of at least 200 people;
- Bunge is required to conduct feasibility studies on expansion of canola crush and export capacity within two years, but there is no mention of following through on construction of the 2.5 million tonne canola crush facility in Regina that Viterra announced in 2021;
- A binding commitment from Bunge to invest at least C$520 million in Canada within the next five years. $500 million is to be spent on capital, such as port terminals and grain elevators, with $15 million going to not-for-profit or charitable causes, and another $5 million on regenerative agriculture programs.
The order-in-council lays out more than two dozen conditions in further detail.
Anti-trust approvals in most other jurisdictions around the world were granted by mid-2024.
"With the Canadian approval, we are nearing completion of the regulatory process and expect to close in early 2025," Bunge said in a statement shared with Reuters news service.
A University of Saskatchewan study found the acquisition of Viterra could result in more than $700 million in annual economic losses to Canadian farmers. The study, which was supported by APAS, Alberta Grains, Sask Barley, and Sask Wheat, found farmgate revenue would potentially be affected in three primary areas: higher export basis due to concentration at the Port of Vancouver, lower canola prices as a result of crush consolidation, and overall reduced competition between primary elevators across the Prairies.
The Competition Bureau mainly raised concerns about reduced competition for canola grown near Bunge’s crush plants in Western Canada, and consolidation of the supply of refined canola oil in Eastern Canada.
A RealAgristudies survey in July 2023 showed seventy-nine percent of Canadian farmers were concerned about the marriage of Bunge and Viterra.
Viterra was originally formed in 2007 with the Saskatchewan Wheat Pool's acquisition of Agricore United. It was bought by Glencore in 2012 for C$6.1 billion.
The deal, as announced in 2023, values Viterra at approximately US$8.2 billion, and sees Glencore, which owns 50 per cent of Viterra, receive $1 billion in cash and 15 per cent of the combined company after it closes.
The Canada Pension Plan Investment Board, which holds a 40 per cent stake in Viterra, is set to receive a 12 per cent position after the merger, as well as $800 million in cash, while the B.C. Investment Management Corp would hold a 3 per cent stake.
Anand, who stepped into the transport minister role in September, has announced that she is planning to leave federal politics ahead of the upcoming election.
Editor's note: This story has been updated with new information from Transport Canada.