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Glencore keen on takeover of Viterra
Source: Bloomberg News |
March 12, 2012, Monday
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Print Edition
Print Edition
GLENCORE International Plc made a 3.5 billion-pound (US$5.49 billion) bid for Viterra Inc, Canada's largest grain handler, The Sunday Telegraph reported, without saying where it got the information.
The approach prompted a statement last Friday from Viterra, saying the company had received expressions of interest from third parties, the newspaper said.
CEO Ivan Glasenberg wants to add Viterra to Glencore's expanding grain business even as the trading company seeks to complete a takeover of Swiss metals and coal producer Xstrata Plc, the London-based Telegraph said. Glencore, the largest publicly traded commodities trader, is offering 27.7 billion pounds in stock to acquire Xstrata in what would be the world's biggest mining takeover.
"Glencore's bid for Viterra continues Glencore's theme to be the DHL of the commodity business," London-based Fairfax IS analyst John Meyer said in an e-mail yesterday. The deal may help the agricultural trading business to return to profit after a difficult year through 2011? and may be followed by a bid for US grain-storage company Gavilon Group LLC, he said.
Buying Viterra would give Glencore the largest share of the Canadian grain-handling market just as the Canadian Wheat Board's monopoly over wheat and barley grown in the west of the country comes to an end. Viterra's share of Canadian grain-handling may rise to almost 50 percent in the next few years from 45 percent, its Chief Executive Mayo Schmidt said in an interview on March 8.
Viterra said in January it expects to increase grain volumes and earnings after the board's control of supplies ends. The Canadian government passed a law in December that will end the monopoly and give farmers the choice to sell to other buyers as of August 1.
As well as being a potential acquisition target, Viterra is considering making a takeover offer of its own.
The approach prompted a statement last Friday from Viterra, saying the company had received expressions of interest from third parties, the newspaper said.
CEO Ivan Glasenberg wants to add Viterra to Glencore's expanding grain business even as the trading company seeks to complete a takeover of Swiss metals and coal producer Xstrata Plc, the London-based Telegraph said. Glencore, the largest publicly traded commodities trader, is offering 27.7 billion pounds in stock to acquire Xstrata in what would be the world's biggest mining takeover.
"Glencore's bid for Viterra continues Glencore's theme to be the DHL of the commodity business," London-based Fairfax IS analyst John Meyer said in an e-mail yesterday. The deal may help the agricultural trading business to return to profit after a difficult year through 2011? and may be followed by a bid for US grain-storage company Gavilon Group LLC, he said.
Buying Viterra would give Glencore the largest share of the Canadian grain-handling market just as the Canadian Wheat Board's monopoly over wheat and barley grown in the west of the country comes to an end. Viterra's share of Canadian grain-handling may rise to almost 50 percent in the next few years from 45 percent, its Chief Executive Mayo Schmidt said in an interview on March 8.
Viterra said in January it expects to increase grain volumes and earnings after the board's control of supplies ends. The Canadian government passed a law in December that will end the monopoly and give farmers the choice to sell to other buyers as of August 1.
As well as being a potential acquisition target, Viterra is considering making a takeover offer of its own.
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