Agreement with CPS resolves competition concerns related to retailing of fertilizer in Saskatchewan

OTTAWA, May 2, 2016 /CNW/ - The Competition Bureau has reached an agreement with Crop Production Services (Canada) Inc. (CPS) to resolve competition concerns related to CPS's proposed acquisition of all six agri-product retail outlets from WendlandAg Services Ltd. 

The Consent Agreement follows the Bureau's review of the proposed transaction which concluded that the acquisition would likely lead to a substantial lessening or prevention of competition in the retail supply of anhydrous ammonia and urea 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, and two anhydrous ammonia tanks, one in Leask, SK, and the other in Hoey, SK. Given the importance of providing additional product offerings beyond anhydrous ammonia to compete effectively, the Bureau will assess whether potential purchasers of the anhydrous ammonia tanks have effective complementary retail facilities nearby.

Mergers in Canada are subject to review by the Bureau under the Competition Act to ensure that they will not result in a substantial lessening or prevention of competition.

Quick Facts

• CPS, a wholly-owned subsidiary of Agrium Inc., and WendlandAg both provide products and services to Western Canadian growers, including fertilizers, crop protection products, seeds, and agronomic services.
• Urea and anhydrous ammonia are two forms of nitrogen fertilizers.
• In reaching its conclusions in this matter, the Bureau considered information provided by market participants, including growers and competitors.

Quote

"The merging parties' continued cooperation throughout the process was instrumental in reaching a timely consent agreement that will ensure that Saskatchewan growers have access to competitive prices and product choices."

John Pecman,
Commissioner of Competition

Related Information

Position statement: Competition Bureau statement regarding the acquisition of WendlandAg's Agri-Product Retail Locations by CPS 
April 3, 2014: Competition Bureau statement regarding CHS's Acquisition of Agrium Assets
March 17, 2014: Competition Bureau approves sale of Agrium assets to CHS
September 5, 2013: Competition Bureau secures remedy in sale of agri-products business to Agrium
September 5, 2013: Competition Bureau statement regarding sale of agri-products business to Agrium

Associated Link

A copy of the consent agreement is available on the Competition Tribunal website.

The Competition Bureau, as an independent law enforcement agency, ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace.

SOURCE Competition Bureau

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