Bunge’s planned acquisition of Viterra would make the world’s biggest oilseed crusher even more dominant and secure a larger role in the expanding renewable diesel industry, although it may face competition hurdles.

Under the deal to create an agricultural giant worth about $34 billion US including debt, Bunge’s crushing capacity will increase by nearly one-third, to 75 million tonnes annually, adding plants in Europe, Canada and Argentina.

The deal would make the combined company better able to capitalize on an anticipated surge in demand for soybean and canola oil to produce biofuels in coming years than its rivals, but more consolidation in the industry leaves farmers with fewer buyers for their crops.

Though its grain trading business is smaller than rivals Cargill and ADM, U.S.-based Bunge is already the world’s largest oilseed processor and producer of vegetable oil.