By David Ljunggren and Rod Nickel
OTTAWA (Reuters) -Canada’s Competition Bureau on Tuesday said it found major competition concerns around U.S. grains merchant Bunge (NYSE:)’s proposed acquisition of Glencore-backed Viterra, throwing an obstacle before a global agriculture merger that is unprecedented in dollar value.
The deal would create a company worth $34 billion including debt, nearer in scale to rivals Archer-Daniels-Midland and Cargill.
In a statement accompanying a formal report to Ottawa, the bureau said the deal was “likely to result in substantial anti-competitive effects and a significant loss of rivalry between Viterra and Bunge in agricultural markets in Canada”.
It determined the transaction was likely to harm competition for grain purchasing in Western Canada, as well as for selling canola oil in Eastern Canada.
The two companies said in a joint statement that the bureau’s concerns were misplaced and vowed to work…
