Bunge Announces Elevator Sales as Condition of Viterra Merger

Bunge has completed the sale of five grain elevators in Western Canada, fulfilling a major portion of a commitment it made to the Canadian government as part of its merger approval with Viterra Ltd.  

Missouri-based Bunge announced the sales in a statement Friday, adding that a tentative agreement is in place to sell the sixth and final elevator facility as required by Ottawa. The elevator divestures mark a significant step in meeting federal competition requirements tied to one of the largest agri-business mergers in recent years. 

According to Bunge, the elevators have been acquired by local companies. Direct Grain Ltd. will operate the Dixon, SK, site, Linear Grain Inc. purchased the Fannystelle, MB, site, and BP & Sons Grain and Storage Inc. purchased the Beausejour, Tucker, and Coulter, MB, sites.  A deal for the sixth facility, located in Valparaiso, SK, has been reached, subject to approval by the minister of transport. Closing is anticipated to take place shortly after the approval is received. 

In addition to these transactions, Bunge said it has also independently sold its Eyebrow, SK, elevator to F.W. Cobs, a divestment not required under the federal conditions. 

Along with the sale of the elevators, the federal government’s approval of the Bunge merger with Viterra also included strict and legally binding controls on Bunge’s minority ownership stake in G3, another important grain company, to ensure Bunge cannot influence G3’s pricing or investment decisions; a price protection program for certain purchasers of canola oil in central and Atlantic Canada to safeguard fair pricing and market stability; and retaining Viterra’s head office in Regina for at least five years to protect Canadian jobs.