Regina, Sask. – After a week of speculation, Swiss commodities producer and marketer Glencore International plc has purchased Regina-based grain handler Viterra Inc. Upon completion of the acquisition, Calgary, Alta.-based Agrium Inc. will buy the majority of Viterra’s agri-products business from Glencore.
Glencore acquired all issued and outstanding shares of Viterra in a deal estimated to be worth $6.1 billion. According to the company, the acquisition strengthens Glencore’s position as a global leader in the grain and oilseeds markets.
In an arrangement worth approximately $1.15 billion, Agrium Inc., a retail supplier of agricultural products and fertilizer, will acquire roughly 90 per cent of Viterra’s 258 agri-products Canadian retail facilities, and all of its 17 Australian retail locations. The locations offer fertilizer, crop protection products, seed and equipment.
“We believe our Crop Protection Services retail business can provide significant value for Canadian farmers and that it provides an opportunity for growth in a market where we currently have a limited retail presence,” says Mike Wilson, president and CEO of Agrium.
With sales of about $7 billion annually, Viterra is Canada’s largest grain handler and marketer, and one of the world’s leading agri-business and ingredient companies.