BRUSSELS, BELGIUM — The European Commission has approved Bunge Global SA’s acquisition of Viterra Ltd. with the condition that the companies will divest the entirety of Viterra’s oilseed businesses in Hungary and Poland and logistical assets tied to those operations.
Bunge and Viterra announced in June 2023 that they had agreed to a merger that will create one of the world’s largest agribusiness companies, moving it closer in size and scope to leading agribusiness giants Cargill and ADM.
In its Aug. 1 announcement, the commission said the merger as initially proposed would have reduced competition in European Union markets for oilseeds and related products, including oilseed meals for animal consumption, crude oilseed oils and refined oilseed oils for human consumption or for biodiesel production.
In particular, the transaction would have negatively affected competition in Central Europe, where both parties are active across the whole supply chain, the commission said, noting the potential for concentration of oilseed processing capacity in the region.
Following positive feedback received during the market test, the commission concluded that the transaction, as modified by the commitments, would no longer raise competition concerns. The decision is conditional upon full compliance with the commitments, which will be monitored by an independent trustee under commission supervision.
“Preventing market concentration in agricultural supply chains is crucial for both farmers and consumers,” said Margrethe Vestager, executive vice president in charge of competition policy for the commission. “We had concerns that the transaction could affect the supply chains of rapeseed and sunflower seed in Central Europe, with potential ramifications across the food, feed and biofuel industries. The divestiture of Viterra’s entire oilseeds business in Hungary and Poland will preserve competition in these markets.”
Regulatory approval also is needed in North America, South America and China.
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