Competition Bureau reaches agreement with La Coop fédérée and Cargill Limited
November 13, 2018 – OTTAWA, ON – Competition Bureau
The Competition Bureau announced today that 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.
For more information on the Bureau's review consult our comprehensive position statement.
“Agriculture is a critical part of the Canadian economy. This agreement with La Coop fédérée and Cargill will help maintain competitive prices and product choices for farmers in Ontario.”
Interim Commissioner of Competition
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.
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