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Investing.com- Canada approves $34 billion merger Bunge Limited (NYSE: ) and Viterra, a Glencore Plc (LON: ) – Subsidiary company, subject to special conditions aimed at maintaining market competition.
Bunge is required to divest six grain elevators in western Canada to address anti-competitive concerns. In addition, the company must invest at least $520 million in Canada over the next five years, Canada’s Ministry of Transport said in a statement.
Canada’s Minister of Transport and Internal Trade, Anita Anand, emphasized that this decision is balanced with stronger regulation to protect economic growth and competition and the public interest.
The Competition Bureau has previously identified anti-competitive effects in certain grain and canola oil markets, particularly in Western Canada. Concerns have also been raised that Bunge’s minority stake in G3 Global Holdings, Viterra’s competitor, could affect market volatility.
“Farmers will have more competitive options when selling their canola and other crops and will get a fair price for their produce,” the ministry said in a statement.
Despite these challenges, Bunge and Viterra expressed confidence that the merger will benefit Canada’s agriculture sector. They plan to increase the resilience of supply chains by increasing investment and employment opportunities and sustain Canada’s leadership in agriculture.
The deal has already received approval from the European Commission and is now awaiting a nod from China.
