Grain Case Settled: Agricore United Agrees to Divest Port Terminal

OTTAWA, October 17, 2002 — Today, the Competition Bureau announced that it has reached an agreement with Agricore United (the business name of United Grain Growers Limited ("UGG") since its merger with Agricore Cooperative Ltd. ("Agricore")) to divest one of its grain handling terminals in the Port of Vancouver. The divestiture results from the Bureau's review of UGG's merger with Agricore on November 1, 2001.

"This divestiture will ensure that farmers and grain handling companies continue to have competitive access to the Vancouver port terminal facilities," said Richard Taylor, Assistant Deputy Commissioner of Competition. "Competition at the port is essential for an efficient grain handling industry in Western Canada."

On November 1, 2001, the Bureau announced that it would ask the Competition Tribunal to order UGG to divest a port terminal at Vancouver. A contested hearing was to continue on October 21, 2002, to determine the appropriate remedy for the substantial lessening of competition in grain handling services at the port of Vancouver, found by the Competition Tribunal in September 2002. The Bureau maintained that a divestiture of either the UGG terminal or the Pacific Elevators Limited ("Pacific") terminal was required to restore competition. Agricore United took the position that a divestiture of only a part of the Pacific terminal was necessary. Today's agreement requires that Agricore United divest either the UGG or the Pacific terminal. A Consent Agreement reflecting the settlement will be filed with the Competition Tribunal, terminating the Tribunal proceedings.

"Not only have we been able to resolve our competition concerns, but the agreement allows both sides to avoid the financial burden associated with the continuation of legal proceedings," said Mr. Taylor, "We are very pleased with this agreement and the outcome of our merger review."

The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act .

For media enquiries, please contact:
Tim Weil
Senior Communications Advisor
Competition Bureau
819-953-9271 or 613-296-2189 (cell.)