Glencore's proposed acquisition of Viterra could raise competition concerns for crop inputs such as fertilizer, Premier of Saskatchewan says
March 23, 2012
– On March 22, Saskatchewan Premier Brad Wall said that commodities supplier Glencore International Plc.’s proposed acquisition of agri-business Viterra Inc. could raise competition concerns in the area of crop inputs, such as fertilizer, Bloomberg reported the same day.
Wall added that the province of Saskatchewan should examine whether Glencore’s acquisition would reduce competition for crop inputs. Wall formed a working committee to examine the deal. The committee will provide its recommendations to the federal government of Canada.
Glencore offered to buy Vieterra for C$6.1 billion (US$6.1 billion). As part of the deal, roughly 90% of Viterra’s retail facilities in Canada will go to Agrium Inc.
In a telephone interview, Agrium spokesperson Richard Downey said that the Viterra deal could potentially expand Agrium’s “retail presence” in the four Canadian provinces west of Ontario by 3 to 4 percentage points
The federal government of Canada is required to review foreign acquisitions of Canadian companies that have amassed assets worth in excess of C$330 million under the Investment Canada Act.
Glencoure’s Vieterra takeover proposal will require the approval of Canada’s competition bureau.
The primary source of this article is Bloomberg, New York, New York, on March 22, 2012.