Commissioner of Competition Approves Purchaser of Port Terminal in Vancouver

News Release

OTTAWA, April 18, 2007 -- The Competition Bureau announced today that Terminal West Ltd. has been selected by Grant Thornton Limited as the purchaser of Agricore United's AUV grain handling terminal in the Port of Vancouver.
"The Bureau is very pleased that this transaction is moving towards a successful conclusion," said Commissioner of Competition Sheridan Scott. "The sale of the AUV terminal resolves the substantial lessening of competition for grain handling services in the Port of Vancouver created by the acquisition of Agricore Cooperative Ltd. by United Grain Growers Ltd. in 2001."
The divestiture is in accordance with the October 2002 consent agreement
(http://www.competitionbureau.gc.ca/internet/index.cfm?itemID=459&lg=e) between the Commissioner and United Grain Growers Ltd. (UGG) requiring the merged entity to divest one of its grain handling terminals in the Port of Vancouver. This was required in order to eliminate the substantial lessening of competition resulting from UGG's acquisition of Agricore in 2001. The merged entity has since been carrying on business as Agricore United. Grant Thornton Limited was appointed as trustee in May 2006 to conduct the sale process.
The purchase by Terminal West Ltd. has been approved by the Commissioner, as required by the October 2002 consent agreement, and was not objected to by Agricore United. The Vancouver Port Authority must still approve Terminal West as a lessee of the AUV Terminal premises. A decision in respect of that matter is expected by the end of May and closing of the transaction is anticipated at the end of June.
Terminal West is a consortium composed of Paterson Globalfoods Inc., Parrish & Heimbecker Ltd., Prairie West Terminal Ltd., Weyburn Inland Terminal Ltd., Great Sandhills Terminal Marketing Centre Ltd., and North West Terminal Ltd.
The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality services. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.
For media enquiries, please contact:
Pamela Wong
Communications Advisor
External Relations and Public Affairs Branch
819-953-7734
For general enquiries, please contact:
Information Centre
Competition Bureau
819-997-4282
1-800-348-5358

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Commissioner of Competition Approves Purchaser of Port Terminal in Vancouver

News Release

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