Bunge divests from Western grain elevators, fulfilling terms of Viterra merger

A Viterra grain storage facility is shown on Tuesday, March 20, 2012 in Saskatoon. THE CANADIAN PRESS/Liam Richards (Liam Richards/The Canadian Press)

Bunge has officially divested from five grain elevators in Western Canada following the agri-food giant’s merger with Viterra earlier this year.

Bunge made the divestiture commitment with federal government in order to receive regulatory approval for its merger with Regina-based Viterra.

The five elevators included four in Manitoba and one in Dixon, Sask.

BP & Sons Grain and Storage Inc. purchased the Beausejour, Tucker, and Coulter, Man. sites, while Direct Grain Limited purchased the Dixon, Sask. site.

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Bunge has reached a tentative deal to sell a sixth and final facility located near Valparaiso, Sask. That deal is subject to approval by the federal ministry of transport.

According to the company, the facilities have been separate from the rest of Bunge’s business and run by a separate manager since July.

Separate from the divestiture agreement with the federal government, the agri-food giant has also sold its Eyebrow, Sask. elevator to F.W. Cobs.

The Bunge – Viterra merger was approved by Ottawa in January under several conditions following the initial announcement of the merger in 2024.

Along with the divestiture in six grain elevators in Saskatchewan and Manitoba, the deal’s terms also include strict and legally binding controls on Bunge’s stake in G3 and a price protection program for certain producers of canola oil.

Additional terms include a commitment for Bunge to invest at least $520 million in Canada over the next five years and retain Viterra’s head office in Regina for at least five years. A full list of terms is available on the Orders in Council online database.

In total, the merger deal is worth $8.2 billion.

Viterra, formerly the Saskatchewan Wheat Pool, is a grain-handling business that has more than 80 facilities across the country.

Viterra was acquired by Swiss commodities giant Glencore in 2012 for $6.1 billion. Glencore later sold a 40 per cent stake in the company to the CPP Investment Board and a nearly 10 per cent stake to the B.C. Investment Management Corp.

-With files from Cole Davenport