August 7, 2023

Regulatory approvals await Bunge's takeover of Viterra in nearly 30 countries

Bunge's acquisition of Viterra is expected to require regulatory clearance in at least 29 countries, according to documents filed recently by the company with the US Securities and Exchange Commission (SEC).

The 547-page preliminary proxy statement includes new details on how the deal was reached, and how Bunge expects it will proceed.

The list of jurisdictions where Bunge said it must receive approval from antitrust or competition regulators includes Brazil, Canada, China, Chile, Costa Rica, Colombia, COMESA (trade area for eastern and southern Africa) nations, Ecuador, Egypt, El Salvador, India, Japan, Mexico, Morocco, Nigeria, Pakistan, Peru, Philippines, Saudi Arabia, South Africa, South Korea, Taiwan, Tunisia, Turkey, Ukraine, United Arab Emirates, the United States, Uruguay and Vietnam. The company added it plans to voluntarily notify governments in Australia, New Zealand and the United Kingdom.

In Canada, the Competition Bureau is expected to look at Bunge's minority stake — believed to be a 25% share — in Winnipeg, Manitoba-based grain company G3 Global Grain Group. G3 owns at least 17 grain elevators in Western Canada and a port terminal in Vancouver, while Viterra has six port terminals and 67 grain storage and handling facilities across Canada. It remains to be seen whether the Competition Bureau will view Bunge's stake in G3 as "significant interest" — a term that is not clearly defined in the Competition Act. Bunge's SEC filing does not contain any mention G3.

The Competition Bureau's scrutiny is expected to extend to canola crush assets in Manitoba, as Viterra owns a canola processing facility at Ste. Agathe, less than 75 kilometres from Bunge's newly-expanded canola crush facility at Altona. Viterra is also planning to build the world's largest integrated canola processing facility in Regina, Saskatchewan.

- Real Agriculture