Monday, July 16, 2012

Canada clears Glencore’s Viterra acquisition

Canada’s Industry Minister Christian Paradis has approved London-listed Glencore’s $6-billion takeover of agribusiness Viterra.

The Minister said in a statement that the deal, which was approved under the Investment Canada Act, would be of net benefit to the country.

Glencore has made a series of commitments to Canada for a five-year period, including increasing Viterra's projected capital expenditures in Canada by more than C$100-million; investing C$8-million above Viterra's projected expenditures in research and development and contributing toward grain industry initiatives in the province of Manitoba.

The company is also looking into working with the Saskatchewan government toward establishing a Global Institute for Food Security and contributing to this initiative should the Saskatchewan government initiate the project; while increasing contributions toward programmes supporting the Western Canadian farm community by 25% and making charitable contributions in support of youth and educational scholarships for First Nations and Metis.

Glencore has also committed maintaining the Regina head office and making it the head office for its North American agricultural operations.

“Glencore is committed to investing in Viterra's operations, its philanthropic initiatives and in playing a key part in ensuring the continued growth of western Canada's agricultural industry," Glencore agricultural products director Chris Mahoney said.

Separately, Glencore has also received notification from the Ministry of Commerce of the People's Republic of China (Mofcom) that it has moved to the next phase of review, which is not uncommon for transactions being reviewed by Mofcom.

Glencore continued to engage with Mofcom to ensure approval as soon as possible.

Mofcom's approval was not expected before the end of July.

Edited by: Mariaan Webb