A proposed $6 billion takeover of Canada’s largest grain handling company has cleared another hurdle.
Viterra shareholders gave overwhelming support today to the proposed takeover involving Switzerland-based commodities trader Glencore International.
At a meeting in Calgary, Viterra shareholders approved a special resolution approving the takeover, which would allow a wholly owned subsidiary of Glencore to acquire all issued and outstanding common Viterra shares for $16.25 per share.
The resolution was approved by 99.8 percent of shareholder votes cast.
Before the deal is finalized, the proposed takeover must receive approvals from other regulatory agencies in Canada.
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The arrangement is also subject to final approval from the Ontario Superior Court Justice.
That approval is expected to be sought on May 31, 2012.
If the court approves the deal and other regulatory hurdles are cleared, the transaction could be done by the end of July, Viterra said.
Exact transaction dates are not certain and could change, the company added.
Viterra shares began trading at $16.02 on the TSE stock exchange today.
“The result of today’s vote demonstrates strong support for this transaction from Viterra’s shareholders,” said Viterra president and chief executive officer Mayo Schmidt.
Chris Mahoney, Glencore’s director of agricultural products, also welcomed the vote results.
“We look forward to becoming part of the agriculture industry in Western Canada and to contributing to the expansion of the grains and oilseeds sector in those communities now served by Viterra, in Canada, Australia and elsewhere.”
