Glencore International Plc (GLEN), the world’s largest publicly traded commodities supplier, said it received approval from the Canadian government for its acquisition of grain handler Viterra Inc. (VT)
“We are very pleased to receive Investment Canada (Act) approval, which recognizes the long term benefits for farmers and Canada from our acquisition of Viterra,” Glencore director of Agricultural Products Chris Mahoney said today in a statement.
Glencore has been working with the government since the C$6.1 billion ($6.01 billion) transaction was announced in March. The Baar, Switzerland-based company has agreed to increase Viterra’s capital expenditures in Canada by more than C$100 million over five years and contribute to “grain industry initiatives” in the province of Manitoba.
Glencore has also agreed to maintain an office in Regina, Saskatchewan, as the head of its North American agricultural operations.
In 2010, Canada’s federal government rejected a $40 billion hostile bid by Melbourne-based BHP Billiton Ltd. for Potash Corp. of Saskatchewan Inc., saying the proposal for the world’s largest potash miner didn’t provide a “net benefit” for the country.
To contact the reporter on this story: Sean B. Pasternak in Toronto at email@example.com