The merger of global grain powerhouses Bunge and Viterra could result in annual losses of more than $2.5 billion for farmers and consumers in BRICS nations.
This was revealed by Hardin Ratshiususu from the Competition Commission of South Africa.
During the interview, the Deputy Commissioner revealed that the merger is part of the agenda of the BRICS countries and was discussed during a conference held earlier in Cape Town, South Africa.
“We all agree that we should strengthen collaboration. We looked at the merger as individual authorities without looking at the global impact of this transaction, or even just the impact across the BRICS economies.
“This is the collaboration that we would be enhancing, and we think that if we do this, we should be able to find ways to mitigate any consequences that would arise because of this merger,” he said.
Ratshisusu also added that the research presented at the BRICS Competition Conference is about the overall concentration in the market of the four or five largest traders in the world.
“The largest traders now control the trade of grain, and this is something that we would have to find very creative ways of responding to, including a joint sector study within the BRICS, so that we can validate if indeed these concerns are concerns that we should take forward as the BRICS competition authorities,” he added.
