The $8.2-billion US merger of Bunge and Viterra is now complete, forming one of the world’s largest agribusiness companies.
The deal was confirmed in a news release issued by the Missouri-based Bunge on Wednesday. It comes nearly six months after the Canadian government approved the merger with Viterra, formerly known as the Saskatchewan Wheat Pool.
The deal was heavily criticized by agricultural producers, who fear it will reduce competition in the grain and canola markets.
Aleana Young, the Saskatchewan NDP’s critic for the economy, said those fears have not gone away since the deal was approved by the Canadian government.
“We’re a mighty province, but we need competition in critical sectors of our economy. So again, to see the government completely absent despite farmers raising alarm bells for over a year has been educational to say the least,” Young said in an interview on Thursday.
The Competition Bureau issued a report in April 2024 that found the deal was likely to hurt competition in the grain and canola markets.
It also found that Bunge, the world’s largest oilseed processing company, could influence the behaviour of G3 Global Holdings, a major competitor to Viterra.
Transport Canada says strict and legally binding controls are needed on U.S.-based Bunge’s minority ownership stake in G3 to ensure it can’t influence that company’s pricing or investment decisions.
Among the restrictions placed on the merger by Ottawa are a commitment to maintain Viterra’s head office in Regina for at least five years and an investment of at least $520 million in Canada within the next five years.
In a statement, the provincial government said it will monitor the deal to ensure those commitments are honoured.
“The Government of Saskatchewan continues to prioritize ensuring that our producers can remain competitive and profitable, with continued access to key global markets,” the statement said.
Young said she’s concerned about the future of the Viterra headquarters past the five-year commitment outlined in the merger approval.
She said she doubts the provincial government did enough to advocate for Canadian producers.
“I think there are a lot more questions to be asked about what, if anything, the province did to stand up for Saskatchewan producers who, again, are concerned about a lack of competition, they’re concerned about reduced logistics and transportation, and they’re concerned about losing farm revenues to the tune of nearly a billion dollars a year,” Young said.
According to a media release, Bunge’s CEO Greg Heckman stated that the merger creates a more robust organization with enhanced capabilities and expertise.
As part of the new structure, former Viterra CEO David Mattiske now serves as co-chief operating officer on Bunge’s executive leadership team. He joins Julio Garros, who previously held the role of Bunge’s co-president of agribusiness.
Viterra operates more than 80 grain-handling facilities across Canada.
