The $8.2 billion merger between Bunge and Viterra has officially cleared its final hurdle, creating one of the world’s largest integrated agribusiness companies with operations focused on food, feed, and fuel. But while the newly merged entity positions itself as a global powerhouse, many producers in Western Canada remain uneasy.
Among the most vocal critics is Jake Leguee, board chair of Sask Wheat and a farmer based in the Fillmore area. He says the concerns with the merger began long before the final regulatory approval was granted.
“Certainly, Sask Wheat has been concerned with this merger right from the start,” said Leguee. “We did some work on building out a report on it with some of the other groups to try to figure out what the impact might be. When we came out with that report, math that the University of Saskatchewan helped us put together on it was probably something in the order of seven to $800 million a year that it would probably cause farmers.”
Leguee emphasized that fewer buyers in Western Canada typically mean lower prices for producers.
“Anytime we consolidate, anytime we reduce the number of buyers in Western Canada, the net impact on farmers is usually not positive,” he said. “There's just a lot of things that we don’t know about it right now, but we continue to be very concerned, and quite disappointed frankly, that the merger was approved at all.”
While certain conditions on the merger were imposed by the federal cabinet when approval for the deal was given, at the suggestion of the Minister of Transport, such as the divestiture of some grain elevators to preserve competition, Leguee questions how effective those measures will be.
“There were a lot of requirements put in place when the merger was approved here in Canada, but how much teeth do they have and do they actually address our concerns? We didn't feel that they did and we continue to feel that way.”
In addition to market competition, Leguee raised concerns about local investments and community presence. Viterra had previously announced plans to build a major canola crush plant near Regina, but the future of that project is now uncertain.
“We haven’t heard anything about that, but there has been no sign of progress,” said Leguee. “Going ahead with this canola crush plant would be an enormously positive thing for Saskatchewan and canola growers.”
Another point of unease is the company’s commitment to keep its Regina office for five years, a requirement of the merger approval.
“That’s not very long,” Leguee remarked. “Will they just hold onto it for that five years and then move out?”
Beyond the economics, there are worries about how the merger might affect community engagement. Viterra has long been known for its support of local initiatives and minor sports in Saskatchewan communities. Leguee hopes Bunge will continue that legacy.
“We in our agricultural communities here in Saskatchewan rely so much on a lot of these companies… They do a lot for our communities, and I certainly hope that with Bunge involved, that won't change.”
While the merger has already gone through, Sask Wheat still hopes the new company will engage meaningfully with Canadian agriculture organizations and keep its commitments to regional investment and competition.
“My hope would be that the divestitures they’re required to make are sold to competitive companies that will be aggressive in those areas,” said Leguee. “And I would hope that this newly merged company remains engaged with the cereals and canola and pulse industries across Western Canada.”
*The article initially stated the conditions on the merger were imposed by the Competition Bureau of Canada. The Competition Bureau concluded that the proposed transaction of Viterra by Bunge was likely to result in substantial anti-competitive effects and a significant loss of rivalry between Viterra and Bunge in agricultural markets in Canada. The article has been updated to reflect it was the federal cabinet that approved the deal with the conditions including divestiture.