Australian competition regulator approves Glencore takeover of Viterra

by News Staff Posted Jun 7, 2012 5:01 am MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email CALGARY – Australia’s competition regulator has approved the friendly takeover bid of Calgary-based Viterra by European commodities giant Glencore PLC.Viterra says the Australian Competition and Consumer Commission will not oppose the $6.1 billion deal.Shareholders at the Canadian agribusiness (TSX:VT) voted overwhelmingly in favour of the deal in May, and the Ontario Superior Court of Justice have already approved the takeover.The federal Competition Bureau had also indicated earlier that it doesn’t plan to intervene.Viterra has said 99.8 per cent of votes cast by its shareholders last month were in favour of accepting the offer of $16.25 per share in cash from the Swiss commodities giant.Viterra expects the transaction to close by the end of July, but adds that could change.It says the closing is still subject to clearances under the Investment Canada Act and the Australian Foreign Investment Review Board.Viterra was formed several years ago after Saskatchewan Wheat Pool bought Agricore United. The company has since expanded beyond Canada.Glencore approached Viterra in March as it was preparing to benefit from the end of the Canadian Wheat Board’s monopoly on the marketing of wheat and barley in Western Canada.The Glencore deal includes a side agreement that will see a large chunk of Viterra’s business sold to two other Canadian companies.Calgary-based Agrium Inc. (TSX:AGU) will pay $1.8 billion for the majority of Viterra’s retail business.Meanwhile, privately held Richardson International of Winnipeg will also acquire a 23 per cent share of Viterra’s grain handling assets in Canada, plus other North American assets.Glencore has also agreed to keep Viterra’s North American head office in Regina. Australian competition regulator approves Glencore takeover of Viterra

Have any Question or Comment?

Leave a Reply

Your email address will not be published. Required fields are marked *