Saturday April 19, 2014


QUESTION OF THE WEEK

Survey results are meant for general information only, and are not based on recognised statistical methods.



Glencore's takeover of Viterra agribusiness cleared by China's government

CALGARY - The $6.1-billion takeover of Canada's Viterra Inc. (TSX:VT) by Swiss commodity trader Glencore International has been approved by China's ministry of commerce.

The decision, announced Friday, is the final regulatory step required for Glencore to buy Viterra, a Regina-based international grain handler that does business in China in addition to major operations in Canada, Australia, the United States and elsewhere.

As a result of the final approval, Glencore expects the effective closing date of the deal to be Dec. 17.

Following that, Glencore will release the funds to Viterra shareholders and the company's stock will be delisted from the Toronto and Australian stock exchanges.

The Viterra takeover received approvals from shareholders and Canadian authorities earlier this year.

The Glencore deal included a side agreement to sell a large chunk of Viterra's business to two other Canadian companies Calgary-based Agrium Inc. (TSX:AGU) and Winnipeg-based Richardson International.

Glencore has also agreed to increase Viterra's projected capital expenditures in Canada by more than $100 million over five years and has said it will contribute to "grain industry initiatives" in Manitoba.

It has also committed to maintaining Viterra's Regina head office and said it will make the location the headquarters for its North American agricultural operations.

Glencore also plans to invest $8 million in Viterra's projected expenses in research and development and plans to work with the Saskatchewan government to establish a Global Institute for Food Security in the province.


Comments


NOTE: To post a comment in the new commenting system you must have an account with at least one of the following services: Disqus, Facebook, Twitter, Yahoo, OpenID. You may then login using your account credentials for that service. If you do not already have an account you may register a new profile with Disqus by first clicking the "Post as" button and then the link: "Don't have one? Register a new profile".

The Alaska Highway News welcomes your opinions and comments. We do not allow personal attacks, offensive language or unsubstantiated allegations. We reserve the right to edit comments for length, style, legality and taste and reproduce them in print, electronic or otherwise. For further information, please contact the editor or publisher, or see our Terms and Conditions.

blog comments powered by Disqus


About Us | Advertise | Contact Us | Sitemap / RSS   Glacier Community Media: www.glaciermedia.ca    © Copyright 2014 Glacier Community Media | User Agreement & Privacy Policy

LOG IN



Lost your password?