Competition Bureau Challenges Proposed Grain Handling Joint Venture

OTTAWA, November 10, 2005 — The Competition Bureau today filed an application before the Competition Tribunal challenging a grain handling joint venture between the Saskatchewan Wheat Pool ("SWP") and James Richardson International Limited ("JRI") at the Port of Vancouver. The Bureau believes the proposed joint venture would remove a competitive alternative from the industry and result in a less competitive market for grain handling services at Canadian West Coast ports.

"This challenge is aimed at ensuring that this transaction does not result in a reduction of competitive options for farmers, through the Canadian Wheat Board, and independent grain companies," said Gaston Jorré, Senior Deputy Commissioner of Competition.

On April 6, 2005, SWP and JRI announced a deal to jointly operate their two port terminals in Vancouver and market grain handling services to third party grain companies. Following a thorough review of the proposal, the Bureau determined that the increased concentration in the ownership of port grain terminals at Vancouver would likely result in a substantial lessening of competition.

The Commissioner has also filed for an interim order to ensure that SWP and JRI continue marketing their grain handling services at the Port of Vancouver independently, until the Competition Tribunal issues a final decision on the Bureau’s challenge.

The Competition Bureau is an independent law enforcement agency. We contribute to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

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Eric Glaude
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