Glencore to offload a Viterra investment after takeover

Glencore, the commodities marketer and producer, is to sell Viterra's minority interest in a nitrogen facility located in Medicine Hat, Alberta, Canada, once it takes over the agri-business and food ingredients group.

The group announced on Friday that it had entered into an agreement to sell the Medicine Hat Facility Interest to CF Industries Holdings for an undisclosed sum.

Glencore had announced on March 20th - when it disclosed details of the C$6.1bn (£3.9bn) takeover of Viterra - that it had agreed to sell the majority of Viterra's retail agri-products business, including the Medicine Hat Facility Interest to Agrium. CF was nominated by agricultural products retailer Agrium as the buyer.

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Unsurprisingly, the sale is conditional upon Glencore's completion of the acquisition of Viterra and receipt of regulatory approvals.

In Glencore's March statement, Chris Mahoney, the Director of Agricultural Products of Glencore, said: "The acquisition of Viterra reflects our strong belief in the importance and future potential of the Canadian and Australian grain markets.

"This is an exciting opportunity to deliver the real benefits that can be generated through the combination of Glencore's and Viterra's respective assets, people and know-how to both farmers and customers in Canada, Australia and further afield."

BC