The Saskatchewan Wheat Development Commission (Sask Wheat) is extremely disappointed in the announcement that the acquisition of Viterra by Bunge has been approved by the Federal Government. The conditions around the approval of the merger fail to address concerns regarding competition and consolidation of grain-handling industry that producers and researchers have raised repeatedly to the government.
“In a report completed by the University of Saskatchewan (U of S), it estimated that the merger would create significant financial losses for grain producers to the amount of $770 million annually,” said Sask Wheat board chair Jake Leguee. “With the lack of existing competition within the grain handling industry, further consolidation through this merger will only harm producers.”
It appears that the terms and conditions outlined for the approval of the merger do not go far enough to protect farmers’ interests and competition within the grain handling industry. Bunge’s 25 per cent ownership stake in G3 was a major concern for Sask Wheat, supported by findings in both the U of S and Competition Bureau reports. Requiring Bunge to divest of its shares in G3 would be the most straightforward solution to prevent Bunge from influencing G3’s activities.
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