Bunge and Viterra’s $34 billion merger deal will get Canada’s approval

Investing.com– Canada has permitted the $34 billion merger between Bunge Restricted (NYSE:BG) and Viterra, a Glencore PLC (LON:GLEN)-backed firm, topic to particular circumstances aimed toward preserving market competitors.

To deal with anti-competitive considerations, Bunge is required to divest six grain elevators in Western Canada. Moreover, the corporate should make investments not less than C$520 million in Canada over the following 5 years, Canada’s transport ministry stated in a press release.

Canada’s Transport and Inner Commerce Minister Anita Anand emphasised that this resolution balances financial progress with sturdy oversight to guard competitors and the general public curiosity.

The Competitors Bureau had beforehand recognized potential anti-competitive results in sure grain and canola oil markets, significantly in Western Canada. Issues have been additionally raised about Bunge’s minority stake in G3 International Holdings, a competitor to Viterra, which might affect market dynamics.

“Farmers can have a variety of aggressive choices after they promote their canola and different crops, in addition to proceed to obtain honest costs for his or her produce,” the ministry stated in a press release

Regardless of these challenges, Bunge and Viterra have expressed confidence that the merger will profit Canada’s agricultural sector. They plan to boost provide chain resilience and preserve Canadian management in agriculture by growing funding and employment alternatives.

The deal has already obtained approval from the European Fee and now awaits a nod from China.