Parrish & Heimbecker Limited reached a consent agreement with Canada’s Competition Bureau on Wednesday to resolve concerns over its proposed acquisition of GrainsConnect Canada Operations Inc., requiring the sale of a grain elevator in Reford, Saskatchewan.
Agreement addresses wheat market concerns
The Competition Bureau determined that P&H’s acquisition of GrainsConnect would reduce competition for wheat purchases from farmers in the Reford region. Under the agreement, P&H must sell GrainsConnect’s Reford grain elevator business to a buyer approved by the Commissioner of Competition.
“Competition at the local level matters for Canadian farmers,” said Jeanne Pratt, interim Commissioner of Competition. “Competition helps ensure that farmers receive better prices and have more choice when selling their grain.”
The consent agreement requires P&H to maintain normal operations at the Reford facility until the sale is completed. Grain elevators serve as critical infrastructure where farmers deliver crops after harvest, with competition between facilities ensuring buyers compete for farmers’ grain.
Company disputes competitive impact
P&H emphasized that entering the consent agreement does not reflect agreement with the Competition Bureau’s assessment of competitive effects in the Reford area. The company said it continues to disagree with that analysis.
“Our decision to agree to a consent agreement reflects a pragmatic desire to move forward, not a departure from the legal principles affirmed by the Tribunal,” said Anthony Kulbacki, president of P&H Grain Division.
P&H cited the Competition Tribunal’s 2022 decision regarding its Virden, Manitoba elevator acquisition, where the Tribunal rejected the Commissioner’s market definitions and found no substantial lessening of competition.
Regulatory mechanism provides certainty
The company described consent agreements as an established mechanism under the Competition Act that provides regulatory certainty and allows transactions to proceed in an orderly manner. P&H noted the agreement does not constitute a precedent for Competition Tribunal jurisprudence.
Both P&H and GrainsConnect operate grain elevators across Western Canada. The consent agreement is registered with the Competition Tribunal and carries the force of a court order.
