Glencore to acquire Viterra

Commodities trader Glencore International is to acquire Canadian grain handler and agricultural products and services provider Viterra in a deal valued at US$6.1 billion.

Deregulation of the Canadian wheat market is imminent, making it – and so Viterra – highly attractive. The world’s four dominant agricultural dealers, ADM, Bunge, Cargill and Louis Dreyfus (ABCD) were said to be interested in acquiring Viterra, but did not make a formal bid.

According to Glencore, the deal provides it with an important growth platform in Canada which is one of the world’s most attractive grain and oilseeds markets, as well as expanding the company’s operations in Australia.

The acquisition of Viterra is consistent with Glencore’s strategy of strengthening its position as one of the global leaders in grain and oilseeds markets.

Viterra’s Tier 1 portfolio of assets in Canada and Australia will allow Glencore to build upon its position
as one of the world’s largest commodity suppliers and provides the opportunity to leverage Glencore’s extensive global networks, expertise and best practices in order to
create additional value across its agricultural businesses.

Chris Mahoney, Director of Agricultural Products of Glencore said: “The acquisition of Viterra reflects our strong belief in the importance and future potential of the Canadian and Australian grain markets. This is an exciting opportunity to deliver the real benefits that can be generated through the combination of Glencore’s and Viterra’s respective assets, people and know-how to both farmers and customers in Canada, Australia and further afield.”

Mayo Schmidt, Viterra’s President and CEO said: “Viterra employees created a worldclass agri-business, of which I am very proud. This has been recognized by Glencore
and its partners, and this transaction creates value and opportunities for employees, our communities, farmers and customers in all the markets we serve.”