Prairie farmers will likely be delivering grain to Glencore elevators by mid-December after the Swiss company received final regulatory approval for its $6 billion purchase of Viterra.
China’s commerce ministry approved the deal Dec. 8. It was necessary because Viterra is a joint venture partner in a Chinese canola crushing plant.
The approval was the last step in the long awaited acquisition of the prairie grain company by Glencore, which made the offer to buy Viterra in March.
The final regulatory hurdle will give Glencore International a significant foothold in the grain industry. As well as its extensive network of prairie grain elevators, Viterra also owns grain storage and handling facilities in Australia.
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Viterra expects Dec. 17 will be the transfer day.
“The approvals over the past months by the Canadian courts, regulators around the world and our shareholders, who voted 99.8 percent in favour of the deal, demonstrate widespread support for this transaction,” Viterra president Mayo Schmidt said in a news release.
Viterra shareholders accepted Glencore’s offer of $16.25 per share in May.
As part of the deal, Glencore must sell some of its farm retail outlets to Agrium, while Richardson International would buy some grain handling facilities and other assets. Those arrangements still require Canadian regulatory approval.
