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Glencore continues making acquisitions

GlencoreGiant trader Glencore has taken over, through a partnership with International Richardson and Agrium, the Canadian grain trader Viterra in a transaction worth $6.1 billion, Reuters writes. For Glencore taking over Viterra is the second transaction that took out of the company accounts several billion dollars in the last six months. Currently Glencore goes through the last steps to formalize the mining group Xstrata takeover, an $80 billion transaction. Switzerland’s Glencore offered $ 16.2 (CAD) for a share in this transaction, and the price was approved unanimously by the Board of Directors of Viterra.

Glencore, the largest trader of raw materials worldwide, announced that it will pay for the deal using the cash it has available and credit. The Swiss company intends to sell part of Viterra’s assets to Agrium and Richardson for $2.6 billion. Agrium is to acquire 34% of agricultural fertilizers division of Viterra for $1.8 billion while Richardson will take over 23% of assets in the handling and transportation of grains for other 800 million dollars.

“The acquisition of Viterra reflects our strong confidence in the importance and future potential of agricultural markets in Australia and Canada”, said Chris Mahoney, the head of the agricultural business of Glencore. Viterra officials announced early last week that several companies have expressed interest in a possible takeover of the company. Market sources reported at that time that leaders for a possible takeover were Cargill and Glencore and other traders such as ADM and Bunge have expressed interest.

Americans from Cargill seemed that they would beat Glencore for this acquisition in the context of the Swiss trader being currently in the process of taking over the British group Xstrata, a transaction valued at 80 billion dollars. Viterra, a grain trading house present in Canada, the United States, New Zealand and China, has a market capitalization of around 5.2 billion dollars.

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