Ownership Changes for Two Thunder Bay Grain Elevators

Two of the seven operational grain elevators in the Port of Thunder Bay are set to change ownership as the federal government has approved the merger of Viterra’s Canadian assets, including two elevators on Maureen Street, with global agri-business Bunge.

The merger decision, announced last week, has sparked criticism from western Canadian farm groups. These groups had urged the government to require Bunge to divest its 25% stake in G3, a grain-handling company majority-owned by a Saudi investment firm, before approving the deal. G3 operates grain elevators across Canada, including one on Darrel Avenue in Thunder Bay.

As part of the approval, the government attached several conditions aimed at maintaining competition and protecting Canadian jobs. These include:

• Bunge’s divestiture of six grain elevators in Western Canada to preserve competitive options for farmers.
• Binding controls to prevent Bunge from influencing G3’s pricing or investment decisions despite its minority ownership.
• A price protection program for canola oil purchasers in Central and Atlantic Canada to ensure market stability.
• A commitment to keep Viterra’s head office in Regina for at least five years.
• A requirement for Bunge to invest $520 million in Canada over the next five years, promoting economic growth and job creation.

The National Farmers Union criticized the merger, arguing that it will reduce competition and concentrate 40% of the grain market under Bunge, making it the world’s largest agricultural commodity trader and potentially jeopardizing farmers’ profits. However, the government emphasized that the terms of the deal would protect competition and fair pricing for producers.

Bunge CEO Greg Heckman addressed concerns in a statement to Real Agriculture, assuring stakeholders that the new company would remain committed to Canadian workers and that no closures of Bunge or Viterra facilities in Canada would result from the transaction. He also asserted that the combined Bunge-Viterra entity and G3 would continue to be strong competitors, offering Canadian producers greater economic security and resilience to supply chain disruptions.

The merger is expected to be finalized early this year.