The acquisition of agricultural business Viterra by Glencore International, the Switzerland-based integrated producer and marketer of commodities, has been approved by the Canadian authorities.
Glencore is paying C$16.25 a share for the grain handler. The Swiss firm got the approval of the Minister of Industry after making a number of commitments covering a five-year period, including: increasing Viterra's projected capital expenditures in Canada by more than C$100m; investing an additional C$80m in Viterra's projected expenditure on research & development; contributing toward grain industry initiatives in the province of Manitoba; increasing contributions toward programmes supporting the Western Canadian farm community by 25%.
Glencore has also committed to maintaining the Regina head office of Viterra and making it the head office for its North American agricultural operations.
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Meanwhile, in the People's Republic of China, the Ministry of Commerce has moved the proposed acquisition of Viterra to the next phase of review, which Glencore said is not an uncommon for transactions being vetted by the Ministry. Glencore remains in discussions with the Ministry to ensure approval as soon as possible, but the group does not think approval will be forthcoming this month.
JH
