March 21, 2012

Glencore to acquire Viterra

Press release

Glencore International announced a CAD6.1-billion (US$6.16-billion) deal to acquire Viterra Inc., Canada's largest grain handler, and plans to establish its North American head office in Regina.
 

The transaction price of CAD16.25 (US$16.42) per share represents a premium of 48% over Viterra's closing price on the Toronto Stock Exchange of CAD10.98 (US$11.09)on March 8, the day before Viterra announced that it had received expressions of interest. The transaction values Viterra's equity at approximately CAD6.1 billion (US$6.16 billion).

The acquisition of Viterra is consistent with Glencore's strategy of strengthening its position as one of the global leaders in grain and oilseeds markets. Viterra's Tier-one portfolio of assets in Canada and Australia will allow Glencore to build upon its position as one of the world's largest commodity suppliers and provides the opportunity to leverage Glencore's extensive global networks, expertise and best practices.

"The acquisition of Viterra reflects our strong belief in the importance and future potential of the Canadian and Australian grain markets," says Chris Mahoney, director of agricultural products for Glencore.
 

Glencore is confident the acquisition of Viterra will provide farmers with strong protection from market volatility, more options to market their grain and oilseeds and more competitive pricing resulting from Glencore's wider markets access and its more consistent demand for grains and oilseeds.

The transaction is expected to close during Viterra's fiscal third quarter.

Headquartered in Baar, Switzerland, Glencore is one of the world's leading integrated producers and marketers of commodities It is listed on the London and Hong Kong Stock Exchanges. Glencore has worldwide activities in the production, sourcing, processing, refining, transporting, storage, financing and supply of metals and minerals, energy products and agricultural products.

Viterra is one of the world's leading global agri-businesses and food ingredients companies, with three vertically integrated business segments of agri-products, grain handling and marketing, and processing. Viterra supplies food ingredients to more than 50 countries worldwide.