Bunge Secures Canadian Approval for Viterra Acquisition
Deal News | Jan 14, 2025 | EIN
The Canadian government has granted conditional approval for Bunge's $8.2 billion acquisition of Viterra, a move anticipated since the deal was announced in June 2023. Approval was confirmed through an order-in-council dated January 14, 2025, after a thorough review process involving Transport Canada and heightened scrutiny from the Canadian Competition Bureau. Conditions for the merger include divestment of several grain elevators, a minority stake control in G3, price protections for canola oil purchasers, maintaining jobs in Regina, and a substantial investment in Canadian infrastructure and programs. The deal has raised concerns from farm groups and could potentially decrease competition, affecting farmgate revenues. Viterra's background, from its formation in 2007 to its acquisition by Glencore in 2012, adds depth to the narrative of this transaction, now concluding with stakeholders like Glencore and Canada Pension Plan Investment Board adjusting their positions in the merged entity.
Sectors
- Agriculture
- Mergers & Acquisitions
- Regulatory Compliance
Geography
- Canada – The approval process and regulatory conditions for the acquisition are specifically focused on the Canadian market and involve Canadian authorities.
- United States – Bunge, a U.S.-based multinational, is a primary participant in the article.
Industry
- Agriculture – The article involves major players in the grain industry—Bunge and Viterra—highlighting its significance in agriculture.
- Mergers & Acquisitions – The article discusses the approval of a major acquisition deal between Bunge and Viterra, complete with conditions from regulatory authorities.
- Regulatory Compliance – The article involves regulatory approvals and stipulations imposed by the Canadian government, highlighting its relevance to regulatory compliance.
Financials
- US$8.2 billion – Acquisition value of Viterra by Bunge.
- C$520 million – Required investment by Bunge in Canada over five years.
- C$500 million – Capital investment required in Canadian infrastructure.
- C$15 million – Investment required in not-for-profit or charitable causes.
- C$5 million – Investment required in regenerative agriculture programs.
- $1 billion – Cash and equity received by Glencore post-closure.
- $800 million – Cash and equity received by Canada Pension Plan Investment Board post-closure.
- $700 million – Potential annual economic loss estimated for Canadian farmers due to merger.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Bunge | Bidding Company | Company | A leading global agribusiness company acquiring Viterra. |
| Viterra | Target Company | Company | A large Canadian multinational agricultural company being acquired by Bunge. |
| Canadian Government | Regulatory Authority | Government | Provided conditional approval for the acquisition. |
| Canadian Competition Bureau | Regulatory Authority | Government | Voiced concerns over the merger's impact on competition. |
| Transport Canada | Regulatory Authority | Government | Conducted the review of the acquisition. |
| Glencore | Selling Company | Company | Currently owns a significant stake in Viterra. |
| Canada Pension Plan Investment Board | Participant | Company | Holds a 40% stake in Viterra to receive equity in new entity. |
| B.C. Investment Management Corp | Participant | Company | To hold stake in the combined entity post-merger. |
| Pablo Rodriguez | Former Transport Minister | Person | Oversaw initial review of the acquisition before resignation. |
| Anita Anand | Transport Minister | Person | Current Transport Minister finalizing the regulatory approval. |
| Agricultural Producers Association of Saskatchewan (APAS) | Stakeholder | Organization | Expressed concerns about the merger affecting competition. |