
Grain Growers Object to Feds’ Approval of Viterra’s US$8.2B Sale
Canada’s grain growers are voicing strong objections to the federal government’s approval of Bunge’s US$8.2 billion acquisition of Viterra.
The government approved the deal through an order-in-council after Transport Minister Anita Anand endorsed the transaction. (The government can sign off on orders-in-council although outgoing Prime Minister Justin Trudeau has prorogued Parliament until the Liberal Party elects a new leader.)
The deal covers numerous grain elevators and other large industrial properties. Viterra operates in Canada, the U.S., Australia, New Zealand and China. The firm’s Canadian business is headquartered in Regina.
Grain Growers of Canada, a national advocacy group, said it is “extremely disappointed” with the approval, citing concerns over reduced competition and the lack of a requirement for Bunge to divest its stake in Saudi grain handler G3.
Canadian grain growers have also cited potential negative impacts on grain terminals in Quebec and the future of a proposed canola-crushing facility in Regina.
Bunge and Viterra rank among the world’s largest grain handlers. GGC group called on Ottawa to revisit the deal’s conditions, strengthen measures to foster competition, and take “meaningful steps” to support Canada’s grain producers.
“Minister Anand’s decision to approve the acquisition, even with conditions, doesn’t go nearly far enough,” said Kyle Larkin, GGC’s executive-director.
The federal government approved the deal with a series of conditions, including the sale of six grain elevators in Western Canada and a commitment from Bunge to invest $520 million in the country. However, GGC and other farm groups argue these measures fall short of protecting producers from significant revenue losses.
“The divestment of six grain elevators is a token gesture in the face of a company that maintains a 25% stake in G3, greatly reducing competition across the Prairies and in Quebec,” said Larkin. “These conditions do little to offset the $770 million annual cost this merger will impose on farmers.”
Research from the University of Saskatchewan and findings from the Competition Bureau indicate that without a divestment of G3, competition in key agricultural markets, including Manitoba and Saskatchewan’s canola crushing sectors, will be significantly weakened, GGC noted in a news release. The university study estimates that farmers will lose approximately $770 million in revenue annually due to reduced competition and increased market concentration.
“This decision is a direct hit to producers’ revenue,” Larkin added. “For example, the average grain farm in Manitoba stands to lose $10,000 in revenue annually. This decision compounds an already difficult landscape, as farmers continue to face rising input costs, falling commodity prices, and increased taxes.”
The deal’s approval follows a prolonged review process. Bunge and Viterra initially announced the merger in June 2023, and Transport Canada completed its review under former transportation minister Pablo Rodriguez in June 2024. The file remained unresolved until Anand’s decision to approve the sale. While anti-trust regulators in most other jurisdictions had already signed off on the deal, farm organizations in Canada continued to push for stricter conditions.
But the government said in a news release that terms and conditions help ensure that the acquisition will not have a negative impact on competition in Canada’s grain and oilseed sector, notably for grain purchasing in Western Canada and the sale of canola oil in Central and Atlantic Canada.
Ottawa contended that farmers will have a wide range of competitive selling options and continue to receive fair prices.
“This decision underscores the importance of promoting economic growth in Canada, while maintaining robust oversight to protect competition and the public interest,” said Anand. “We are committed to supporting a strong economy, including in the agricultural and transportation sectors.”
The Agricultural Producers Association of Saskatchewan had previously urged the government to require Bunge to sell its stake in G3 as part of the approval process, Real Agriculture reported. The Competition Bureau also raised concerns about market consolidation, particularly regarding canola crushing capacity in Western Canada and refined canola oil supply in Eastern Canada, the report noted.
Bunge’s acquisition of Viterra involves purchasing shares from three co-owners: Swiss commodities giant Glencore, the Canada Pension Plan Investment Board (CPPIB), and the B.C. Investment Management Corporation. According to Real Agriculture, CPPIB, which holds a 40% stake in Viterra, is set to receive a 12% share in the newly merged company along with $800 million in cash.
With Canadian regulatory approval now secured, Bunge expects to finalize the transaction in early 2025.
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