Glencore International, the giant producer and marketer of commodities, has been given the all-clear by Australian authorities for the acquisition of Canadian agricultural grain handler Viterra.
Glencore, which offered C$16.25 per share for the group in March, equal to C$6.1bn (£3.9bn), received notice on Thursday from the Foreign Investment Review Board (FIRB) that its acquisition has been approved, completing the necessary Australian regulatory approvals that were required.
"We are very pleased to have received FIRB approval. For almost ten years Glencore has forged close relationships with Australian grain growers. The acquisition of Viterra will strengthen our commitment to the future of the Australian grain industry," said Glencore's Director of Agricultural Products, Chris Mahoney.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Now the group is just waiting for regulatory approvals by the Ministry of Commerce in China, which is still reviewing the takeover.
According to Reuters, the Australian government has been reviewing the grains handling industry as a result of concerns over market dominance, especially in South Australia.
Glencore said on Friday: "We have noted the process improvement undertakings made by Viterra in its responses to the South Australian Post Harvest Working Group Review in the 2010/11 season and we are committed to implementing them.
"In addition, we intend to work closely with the Australian Competition and Consumer Commission (ACCC) to further refine access arrangements governing South Australian grain ports."
BC
