Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: Competition Bureau settles concerns over agri-product outlets deal, (May 2, 2016)

By Michael Menzhuber, J.D., LL.M.

The Canada Competition Bureau and Crop Production Services (Canada) Inc. (CPS) have reached an agreement to resolve competition concerns related to CPS’s proposed acquisition of all six agri-product retail outlets from WendlandAg Services Ltd., the agency announced today.

CPS, a wholly-owned subsidiary of Agrium Inc., and WendlandAg both provide fertilizers, crop protection products, seeds and agronomic services to Western Canada growers.

The Consent Agreement follows the Competition Bureau’s review of the proposed acquisition, which concluded that it would likely lead to a substantial lessening or prevention of competition in the retail supply of anhydrous ammonia and urea (two forms of nitrogen fertilizers) to farmers in certain areas of Saskatchewan.

Under the terms of the Consent Agreement, CPS will divest:

• one agri-product retail outlet in Rosthern, SK;

• one anhydrous ammonia tank in Leask, SK; and

• one anhydrous ammonia tank in Hoey, SK.

Given the importance of providing additional products beyond anhydrous ammonia, in order to compete effectively, the Bureau will assess whether potential purchasers of the anhydrous tanks have effective complementary retail facilities nearby.

Companies: Crop Production Services Canada Inc.; WendlandAg Services Ltd.

News: AcquisitionsMergers Antitrust