EU clears Bunge's acquisition of Viterra subject to conditions

After a European Commission’s investigation and the acceptance of the proposed remedies by the companies, the commission said the transaction would not raise competition concerns.

August 6, 2024

The European Commission has approved, under the EU Merger Regulation, the proposed acquisition of Viterra by Bunge. The approval is conditional upon full compliance with the commitments offered by the parties.

The commission's investigation showed that the acquisition, as initially notified, would have reduced competition in the 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 found that the transaction would have resulted in a considerable concentration of oilseed processing capacity in Central Europe, with potential negative effects vis-à-vis farmers and downstream customers.

To address the commission's competition concerns, the parties offered to divest the entirety of Viterra's oilseed businesses in Hungary and Poland and a number of logistical assets linked to these operations.

These commitments fully address the competition concerns identified by the commission, by removing the horizontal overlaps and vertical links between the parties' oilseed businesses in the concerned territories.

"Preventing market concentration in agricultural supply chains is crucial for both farmers and consumers. 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," said Margrethe Vestager, executive vice president in charge of competition policy.

Following the positive feedback received during the market test, the commission concluded that the transaction, as modified by the commitments, would no longer raise competition concerns.

In June 2023, the combined Bunge and Viterra business announced the new executive leadership team.