viterra

It’s official Glencore International and Viterra have reached a deal!

Glencore will aquire all of the outstanding shares of the western Canadian agribusiness for $16.25 per share.

Viterra's President and CEO Mayo Schmidt said “As a public company, we must grow and continue to evolve, today we are announcing Glencore has made an offer to acquire Viterra, one which our board of directors has unanimously approved. Glencore has entered into agreements with two other Canadian companies, Agrium and Richardsons, who will assume some of our businesses as well.”

Richardson International will acquire 19 country elevators and the crop input centres co-located with those elevators including facilities in Assiniboia, Davidson, Kindersley, Unity, White City, Alameda and Maple Creek.

Agrium will acquire the majority of Viterra's retail agri-products business including its 34% interest in Canadian Fertilizer Limited for which Agrium will pay $1.8 billion in cash.

"I don't think we will be reducing the competition in Canada," said Chris Mahoney, Glencore's Director of Agricultural Products. "I think perhaps the reverse. If you look at what Viterra constitutes today, and if you look at our construction, yes Richardson will grow, but we will be on the scene as well. I think if you look at it in detail there will be more competition, more choice for the farmer, not less."

The deal still must pass regulatory approval.