Bunge Ltd.’s proposal to acquire Glencore-backed Viterra (GM June 16, p. 1; May 26, p. 30) will undergo a public review in Canada, including with members of the port and marine industry, to ensure fair transportation pricing and access.
The $8.2 billion deal to create an agricultural trading giant is of “significant national interest in Canada’s transportation sector and the broader supply chain,” as both companies hold ownership interests in port terminals throughout the country, said Pablo Rodriguez, Canada’s Minister of Transport, in a Sept. 26 statement.
The transaction will be scrutinized under the mergers and acquisitions provisions of the Canada Transportation Act and has a completion deadline of June 2. “Healthy competition in the transportation sector is necessary to ensure fair pricing and access for users, especially for Canadian farmers,” said Rodriguez.
Transport Canada has up to 250 days, or until June 2, 2024, to complete the public interest assessment. The two companies had anticipated the deal would close in mid-2024 subject to regulatory approvals and approval by Bunge shareholders. Bunge shares were down 1.56% in New York at close on Sept. 26.
Bunge’s global holdings include 56 crush plants with a total crushing capacity of 57 million mt; 26 port terminals; 47 oil refineries; and 17 grain mills. Viterra markets 134 million mt of commodities from more than 270 storage facilities, with global holdings that include 15 crush plants with a total crushing capacity of 18 million mt; 29 port terminals; seven biodiesel plants; eight grain mills; and two sugar mills.