The Competition Bureau announces it has reached an agreement with La Coop fédérée (LCF) and Cargill Limited (Cargill) related to LCF's proposed acquisition of Cargill's Ontario grain business, retail crop inputs business and 50% equity interest in South West Ag Partners Inc.
The agreement will preserve competition in crop input retailing in specific areas of Ontario where LCF and Cargill own competing crop input retail locations.
The bureau's review concluded that within certain local areas of southwestern and central Ontario, the proposed transaction would likely substantially lessen competition in the retailing of crop inputs, and specifically fertilizers and crop protection products.
In response to these findings, LCF has agreed to sell Cargill's retail locations in Alliston, Harrow, Tilbury, and Waterford, Ontario to a purchaser acceptable to the commissioner.
The commissioner is satisfied that this agreement addresses the competitive issues arising from the proposed transaction.
The bureau will publish a comprehensive position statement on its review in the coming days.
Quick facts
- On March 22, 2018, LCF announced that it had signed an agreement to purchase the grain and crop production input assets located in Ontario from Cargill, including Cargill's interests in South West Ag Partners Inc.
- LCF, headquartered in Montreal, is the largest agri-food enterprise in Quebec, providing growers with goods and services to support both crop and animal production operations.
- Cargill, headquartered in Winnipeg, is one of Canada's largest merchandisers and processors. It is involved in crop input product retailing, as well as grain handling, milling, salt distribution and merchandising.
