The merger between Bunge and Viterra, totaling $8.2 billion, has been successfully finalized, establishing one of the leading agribusiness entities globally. Bunge, based in Missouri, officially announced the completion of the agreement on Wednesday, following the Canadian government’s approval nearly six months ago. The union has sparked concerns among agricultural producers who worry about diminished competition within the grain and canola markets.
Aleana Young, the economic critic for the Saskatchewan NDP, emphasized that apprehensions persist despite the government’s endorsement of the merger. Young stressed the importance of maintaining competition in critical economic sectors to support the province’s prosperity and resilience.
In April 2024, the Competition Bureau raised red flags over potential competition issues in the grain and canola markets due to the merger. Concerns were also raised regarding Bunge’s ability, as the world’s largest oilseed processing company, to impact G3 Global Holdings, a key competitor to Viterra. Transport Canada has underscored the necessity for stringent controls on Bunge’s minority ownership in G3 to prevent any undue influence on pricing or investment decisions.
To address the merger’s implications, Ottawa has imposed specific conditions, including the commitment to retain Viterra’s headquarters in Regina for at least five years and a minimum investment of $520 million in Canada over the next five years. The provincial government has pledged to oversee compliance with these obligations to safeguard the interests of producers and uphold competitiveness.
Despite the commitments, concerns linger regarding the long-term future of Viterra’s headquarters beyond the stipulated five years. Young expressed doubts about the government’s advocacy efforts for Canadian producers, citing the potential risks of reduced competition, logistical challenges, and substantial revenue losses for farmers.
Bunge’s CEO, Greg Heckman, highlighted that the merger enhances the organization’s capabilities and expertise, fostering a more robust operational structure. Former Viterra CEO David Mattiske now shares the role of co-chief operating officer on Bunge’s executive team with Julio Garros, who previously served as Bunge’s co-president of agribusiness. Viterra currently manages over 80 grain-handling facilities across Canada.
