The government says it is monitoring the situation as the proposed merger goes through a public assessment process
REGINA — Premier Scott Moe said the Saskatchewan government is closely watching the proposed Bunge-Viterra merger.
He told reporters May 2 he and agriculture minister David Marit are waiting to see how the two companies respond to recent reports that say the deal would cost producers hundreds of millions of dollars and reduce competition.
The Competition Bureau of Canada and a study from University of Saskatchewan economists for several farm organizations both raised concerns about anti-competitive effects of the proposal. One of the sticking points is Bunge’s minority interest in G3, a strong competitor to Viterra.
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The companies have time to respond with measures they could take to address those concerns, and they say they expect the deal to close in June.
Transport Canada has until June 2 to finish its public interest assessment review and report back to the federal transport minister. A final decision will be made by cabinet, based on the minister’s advice.
During question period in Regina, NDP agriculture critic Trent Wotherspoon asked why Marit had been silent on the issue.
The minister was not in the House, but deputy premier Donna Harpauer said he had consulted with stakeholders and met with both companies to ensure producer feedback was heard.
She said the Competition Bureau addressed producer concerns, and the government would monitor what happens next.
“This is a bad deal for producers in our province, and it shouldn’t go ahead,” Wotherspoon said.
“What’s that premier going to do to stand up for Saskatchewan?”
Moe said the government has producers’ backs.
He said he is watching for three things in the companies’ responses to the bureau. Those include whether the deal is in the best interest of primary producers, rural Saskatchewan communities and agriculture in general.
Asked if he was worried about the loss of Viterra head office jobs in Regina, he said that is “precisely some of the questions that our minister of ag is asking.”
“We understand that Bunge is an internationally operating company and we’re not asking them to move their head office here, but we certainly don’t want … to lose the jobs that are currently Viterra jobs here in Regina,” he said.
The proposed merger could scuttle Viterra’s plans to build a canola crush facility near Regina, and Moe said that is also on his radar.
“We’ve worked, as a government, hard to provide the environment for investment into that value-added space,” he said, adding that the metrics for such a plant are as strong as they’ve ever been.
