Canada’s Competition Bureau says it is “pleased” a proposed merger, which would have seen two frozen and canned vegetable companies in Canada become one, has been terminated.
The merger agreement was announced last year, and if approved, would have seen Nortera, a Canadian-based frozen and canned vegetable processor and marketing company, acquire Green Giant and le Sieur brands in Canada from U.S.-based B&G Foods. Nortera is also the parent company of product brands including Del Monte and Arctic Gardens.
The proposed merger was subject to regulatory approval and the satisfaction of customary closing conditions.
The Competition Bureau’s response to the news of the merger being cancelled was published in a release from Tuesday.
“The Competition Bureau is aware that Nortera and B&G Foods have jointly decided not to proceed with the proposed acquisition by Nortera of B&G Foods Canada’s Green Giant and le Sieur Canadian vegetable business,” the release said.
“We are pleased that a merger, which our investigation found was likely to harm competition, will not move forward.”
This comes after the Competition Bureau, in August, submitted a request to the Competition Tribunal to block the merger because of what it said was a risk to competition in Canada that could lead to higher prices for consumers.
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More competition in the marketplace means consumers may have more options for which products to buy, and that can influence companies to lower prices to win over cost-conscious shoppers.
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“Nortera is already Canada’s dominant processor of certain canned and frozen vegetables. The transaction would combine it with its only major national brand competitor and harm competition in an already highly concentrated market,” the Competition Bureau said in a release from August.
“Canned and frozen vegetables are staple grocery items that Canadians rely on. Strong competition between suppliers helps keep prices affordable and ensures that consumers have a range of options at the grocery store.”
Rising food prices have been a major issue for Canadians grappling with the heightened cost of living, and canned and frozen vegetable prices have been on the rise in recent months, along with food inflation overall.
For example, data from Statistics Canada shows the average price for 750 grams of frozen mixed vegetables has increased from $4.08 in August 2025 to $4.33 in August of this year. In the same period, a 341 ml can of corn has increased from an average of $1.59 to $1.69.
Food prices have been on the rise because of tariffs, environmental factors, as well geopolitical tensions weighing on supply chains and driving up costs of diesel and other commodities.
The Competition Bureau said its investigation of the proposed merger found, if it were to be approved, would have lead to less competition and even higher prices.
“Throughout our review, the Bureau carefully assessed the transaction’s likely impact on competition and consumers. Our investigation concluded that the acquisition was likely to lead to less competition in the form of higher prices and fewer choices in the wholesale supply of certain canned and frozen vegetables in Canada,” the Competition Bureau said in the release from Tuesday.
“Canned and frozen vegetables are everyday grocery staples that Canadians rely on. Preserving competition in these markets matters because competition leads to lower prices and ensures Canadians continue to have access to a variety of products at the grocery store.”
Interesting trade off. Allowing a US firm to continue to operate in Canada to have competition and possibly keep prices low, or have a Canadian company buy them out, so we buy Canadian and keep the profits in Canada.
Better for consumer, or better to support US companies…