Commodity trader Glencore has said it wants to be a “true leader” in global grain trading after completing its acquisition of Viterra in a deal worth US$6bn.
Glencore said this week its completion of the deal hands it “immediate critical mass” in the key grain markets of North America and Canada, as well as Australia. It will pay Viterra shareholders C$16.25 (US$16.47) per share in cash.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The move by the Switzerland-based commodity trader will also create more competition for established agribusiness powerhouses such as Archer Daniels Midland, Bunge and Cargill.
Chris Mahoney, director of agricultural products at Glencore, said: “By combining Viterra’s first class assets, grain logistics and processing insight with our global marketing capability, we have the opportunity to become a true leader across the sector.”
Glencore originally announced a deal to buy Viterra in March but has been kept waiting by China’s Ministry of Commerce. Regulatory clearance was needed in China due to a Viterra joint venture in the country.
In a tit-for-tat scenario, Reuters notes that there has been speculation that Chinese authorities were waiting to see if Canada’s own competition body would approve China-based CNOOC’s buyout of Canadian oil producer Nexen. Approval for that deal was announced earlier this month.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAs part of Glencore’s buyout of Viterra, it has committed to selling certain assets, including some grain handling operations and farm retail stores, to Richardson International and Agrium. These disposals will be completed by the end of 2013, Glencore said this week.
