Glencore acquires Canadian grain handler Viterra for $6.1bn

Swiss commodities trader Glencore International has completed the acquisition of Canadian grain handler Viterra in a C$6.1bn ($6.18bn) all-cash deal.

In March 2012 Glencore signed an agreement to acquire Viterra, which operates grain-marketing and distribution businesses across Canada, the US, Australia, New Zealand and China.

Glencore also agreed to sell certain Viterra assets such as grain elevators and part of its retail agri-products business to Agrium and Richardson International to allay the concerns of the Ottawa regulatory body, which could have blocked the transaction on competition grounds.

Glencore noted that the acquisition gives the company a significant presence in North America through Viterra’s substantial Canadian operations, while also expanding its existing operations in Australia.

Glencore agricultural products director Chris Mahoney said that the combination of Viterra’s assets, grain logistics and processing insight and Glencore’s global marketing capability gives the company the opportunity to become a leader across the sector.

"Glencore has acquired more than physical assets; we have gained the world class skills and experience of Viterra employees and we are already working well together to implement a smooth integration," Mahoney added.

Glencore has also announced key management appointments – the former chief operating officer of Viterra, Fran Malecha, has been appointed agricultural products director, North America, with the responsibility to lead the North American operations.

David Mattiske has been appointed country manager for agricultural products, Australia and New Zealand, and he will head the agricultural operations in Australia and New Zealand.

Glencore has also made Viterra’s Regina head office the headquarters for its North American agricultural operations.

Glencore expects all the integration projects, including the sale of certain assets to Agrium and Richardson International, to be completed by the end of 2013, and plans to support these assets until the divestment.