Canada Approves Viterra-Bunge Merger, Clearing One of the Final Hurdles to Closing the Deal

Canada approved the merger of Viterra and Bunge on Tuesday, clearing one of the final hurdles to closing the deal. Reuters reported this.

According to a statement from the Transport Ministry, the conditions of the approval include Bunge’s divestiture of six grain elevators in Western Canada and a binding commitment by Bunge to invest at least C$520 million ($362 million) in Canada over the next five years.

The approval also requires strict and legally binding controls on Bunge’s minority stake in Saudi-backed grain company G3 to ensure that Bunge cannot influence G3’s pricing or investment decisions, the ministry said. Together, Bunge, Viterra and G3 account for one-third of Western Canada’s grain elevator capacity.

“With Canadian approval, we are nearing the completion of the regulatory process and expect to close in early 2025,” Bunge commented.

In approving the deal, the transport minister required the creation of a price protection program for certain canola oil buyers in Central and Atlantic Canada to ensure fair pricing and market stability.

“This decision underscores the importance of promoting economic growth in Canada while maintaining strong oversight to protect competition and the public interest,” Transport Minister Anita Anand said in a statement.

Tags: Bunge, Viterra, Canada