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Glencore Said to Express Interest in Buying Canadian Grain-Handler Viterra
By Jesse Riseborough and Matthew Campbell - Mar 12, 2012 4:22 AM CT .LinkedIn Google +1 Print QUEUEQ..Glencore International Plc (GLEN),the world?s largest publicly traded commodities supplier, has expressed an interest in Canada?s biggest grain handler Viterra Inc. (VT),according to a person familiar with the situation.
Other companies may also be studying Viterra, said the person, who declined to be identified because the details haven?t been made public. Closely held grain distributor Cargill Inc. has expressed an interest, the Wall Street Journal reported, citing people it didn?t identify. Viterra has gained 24 percent since saying last week it had received approaches, giving it a market value of C$5 billion ($5 billion).
Glencore International Plc CEO Glasenberg Jerome Favre/Bloomberg
Ivan Glasenberg, chief executive officer of Glencore International Plc, is looking to expand his North American grain business.
?A bidding war for Viterra could emerge and a large price will need to be paid,? Belinda Moore, a Brisbane-based analyst with RBS Morgans Ltd., said today in a report.
Holly Gibney, a spokeswoman for Regina, Saskatchewan-based Viterra, declined to comment and referred back to the company?s March 9 statement in which it said it had received expressions of interest.
Largest Share
A spokesman for Baar, Switzerland-based Glencore declined to comment. Lisa Clemens, a spokeswoman for Cargill, declined to comment. Glencore?s interest in Viterra was reported earlier by the Sunday Telegraph.
Buying Viterra would give Glencore the largest share of the Canadian grain-handling market just as the Canadian Wheat Board?s monopoly over wheat and barley grown in the west of the country comes to an end.
Viterra?s share of Canadian grain-handling may rise to almost 50 percent in the next few years from 45 percent, its Chief Executive Officer Mayo Schmidt said in an interview on March 8.
?We believe this mooted acquisition has credibility,? Liberum Capital Ltd. analysts Dominic O?Kane and Ash Lazenby wrote in a note to clients today. ?The timing looks attractive given that the Canadian Wheat Board?s monopoly over wheat and barley is about to terminate, meaning Viterra?s market share would increase to circa 50 percent.?
Read more at http://www.bloomberg.com/news/2012-...in-buying-canadian-grain-handler-viterra.html
By Jesse Riseborough and Matthew Campbell - Mar 12, 2012 4:22 AM CT .LinkedIn Google +1 Print QUEUEQ..Glencore International Plc (GLEN),the world?s largest publicly traded commodities supplier, has expressed an interest in Canada?s biggest grain handler Viterra Inc. (VT),according to a person familiar with the situation.
Other companies may also be studying Viterra, said the person, who declined to be identified because the details haven?t been made public. Closely held grain distributor Cargill Inc. has expressed an interest, the Wall Street Journal reported, citing people it didn?t identify. Viterra has gained 24 percent since saying last week it had received approaches, giving it a market value of C$5 billion ($5 billion).
Glencore International Plc CEO Glasenberg Jerome Favre/Bloomberg
Ivan Glasenberg, chief executive officer of Glencore International Plc, is looking to expand his North American grain business.
?A bidding war for Viterra could emerge and a large price will need to be paid,? Belinda Moore, a Brisbane-based analyst with RBS Morgans Ltd., said today in a report.
Holly Gibney, a spokeswoman for Regina, Saskatchewan-based Viterra, declined to comment and referred back to the company?s March 9 statement in which it said it had received expressions of interest.
Largest Share
A spokesman for Baar, Switzerland-based Glencore declined to comment. Lisa Clemens, a spokeswoman for Cargill, declined to comment. Glencore?s interest in Viterra was reported earlier by the Sunday Telegraph.
Buying Viterra would give Glencore the largest share of the Canadian grain-handling market just as the Canadian Wheat Board?s monopoly over wheat and barley grown in the west of the country comes to an end.
Viterra?s share of Canadian grain-handling may rise to almost 50 percent in the next few years from 45 percent, its Chief Executive Officer Mayo Schmidt said in an interview on March 8.
?We believe this mooted acquisition has credibility,? Liberum Capital Ltd. analysts Dominic O?Kane and Ash Lazenby wrote in a note to clients today. ?The timing looks attractive given that the Canadian Wheat Board?s monopoly over wheat and barley is about to terminate, meaning Viterra?s market share would increase to circa 50 percent.?
Read more at http://www.bloomberg.com/news/2012-...in-buying-canadian-grain-handler-viterra.html