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Canada’s Competition Bureau is seeking to block Nortera Food’s proposed acquisition of B&G Foods Canada’s Green Giant and Le Sieur vegetable business, arguing that the transaction would substantially reduce competition in the country’s canned and frozen vegetable sector.
The Bureau announced that it has applied to the Competition Tribunal to stop the deal and has also requested an order preventing the companies from closing the transaction until the Tribunal reaches a decision.
According to the regulator, Nortera is already Canada’s dominant processor of certain canned and frozen vegetables. The acquisition would bring the company together with what the Bureau describes as its only major national brand competitor, further concentrating an already consolidated market.
Nortera markets canned and frozen vegetables in Canada under brands including Del Monte and Arctic Gardens, while B&G Foods Canada sells vegetables under the Green Giant and Le Sieur brands.
The Competition Bureau said its investigation found that the transaction was likely to result in higher prices, fewer choices and reduced competition in the wholesale grocery supply chain.
Jeanne Pratt, interim Commissioner of Competition, said: “Our investigation found that this proposed transaction would weaken competition and likely lead to higher prices and fewer choices for staple items at the grocery store. We are taking action to preserve competition so that Canadians don’t pay more for basic necessities like canned and frozen vegetables.”
B&G Foods said it was disappointed by the Bureau’s decision and disagreed with its assessment.
In a statement, the company said it believes the available evidence supports the transaction as being in the best interests of stakeholders, including Canadian customers.
B&G Foods said it remains in discussions with Nortera and is evaluating ‘multiple options’ including potential alternatives.
