Glencore grabs Canadian grain giant
The trading giant Glencore yesterday strengthened its grip on the world's most vital commodities by striking a deal to buy the biggest grain business in one of the world's biggest wheat exporters, Canada, for C$6.1bn (£3.9bn).
London Stock Exchange-listed Glencore, whose empire encompasses metals, minerals and food supplies, pulled off the deal for Viterra despite being in the throes of negotiating a £36bn takeover of the mining behemoth Xstrata. Glencore has highlighted food as being one of its main targets for expansion. It will pay for the deal using its existing cash resources and credit facilities but will also sell on part of the business to two partners for C$2.6bn, reducing the load.
Viterra handles about 45 per cent of Canada's grain and oilseed and owns almost all the grain storage facilities in South Australia. Chris Mahoney, the head of agricultural products for Glencore, said: "This reflects our strong belief in the importance and future potential of the Canadian and Australian grain markets."
Viterra is seen as attractive for buyers now as Canada is poised to deregulate the grain industry next year. Canada's prairies, where Viterra is based, are a top five global exporter of wheat and barley.
- 1 The truth about 'girl things': Three cheers for Heather Watson's honesty
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 3 UK weather: Snow to fall during coming week with sub-zero temperatures to last until early February
- 5 Men behaving badly: Urinating while standing, 'manspreading' and the gendering of selfishness
Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
UK weather: Snow to fall during coming week with sub-zero temperatures to last until early February
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign
Ellen DeGeneres leads Johnny Depp, Gwyneth Paltrow and Paul Bettany in revealing game of Never Have I Ever
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
British Muslim school children suffering a backlash of abuse following Paris attacks
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
iJobs Money & Business
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...
£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...