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Investing.com-- Canada has approved the $34 billion merger between Bunge Limited (NYSE:BG) and Viterra, a Glencore PLC (LON:GLEN)-backed company, subject to specific conditions aimed at preserving market competition.
To address anti-competitive concerns, Bunge is required to divest six grain elevators in Western Canada. Additionally, the company must invest at least C$520 million in Canada over the next five years, Canada's transport ministry said in a statement.
Canada's Transport and Internal Trade Minister Anita Anand emphasized that this decision balances economic growth with robust oversight to protect competition and the public interest.
The Competition Bureau had previously identified potential anti-competitive effects in certain grain and canola oil markets, particularly in Western Canada. Concerns were also raised about Bunge's minority stake in G3 Global Holdings, a competitor to Viterra, which could influence market dynamics.
"Farmers will have a wide range of competitive options when they sell their canola and other crops, as well as continue to receive fair prices for their produce," the ministry said in a statement
Despite these challenges, Bunge and Viterra have expressed confidence that the merger will benefit Canada's agricultural sector. They plan to enhance supply chain resilience and maintain Canadian leadership in agriculture by increasing investment and employment opportunities.
The deal has already received approval from the European Commission and now awaits a nod from China.