Nineteen centres affected | Centres not part of previous sale to Agrium will be sold to another buyer, company says
Employees at 19 Viterra crop input centres are still waiting to learn how they will be affected by the company’s plan to sell its retail operations in Western Canada.
Employees working at nine locations in Saskatchewan, nine locations in Alberta and one location in Manitoba have been advised that they will not be part of a larger, yet-to-be-approved deal that will see Agrium buy 230 Viterra crop retail centres in Canada.
Viterra has indicated the 19 locations not included in the Agrium deal will instead be sold to another buyer, which has yet to be announced.
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In the meantime, affected employees — more than 54 in Saskatchewan and an undisclosed number in Manitoba and Alberta — are waiting for information and hoping their employment will not be affected.
The locations are Barons, Clares-holm, Crossfield, Eaglesham, Grimshaw, High River, Manning, Stettler and Viking in Alberta, Canwood, Cupar, Kamsack, Leoville, Lloydminster, North Battleford, Prince Albert, Strasbourg and White Star in Saskatchewan and Roblin in Manitoba.
The Grain Services Union, which represents some of the workers, said the affected employees have received no information to suggest that the operations will be closed or that their jobs will be terminated
Nonetheless, the uncertainty is affecting workers.
“GSU is pressing Viterra to disclose its complete plan and to show more sensitivity to the concerns of affected employees,” said a document posted on the union’s website
Western Producer efforts to speak with officials from Viterra and its parent company, Glencore Xstrata, were unsuccessful.
Glencore, which acquired Viterra last December in a deal valued at more than $6 billion, has been steadily selling off pieces of Viterra’s global grain empire over the past few months.
Last week, Reuters reported that Glencore is working with Barclay’s PLC in an effort to sell Dakota Growers Pasta Co., a pasta processing plant located in St. Louis Park, Minnesota.
Earlier this year, Richardson International concluded an $800 million deal with Glencore to acquire 19 western Canadian elevators formerly owned by Viterra, 13 crop input centres, terminal facilities in Thunder Bay, Ont., and milling operations in Saskatchewan, Alberta, Manitoba, Nebraska and Texas. That deal closed May 1.
Meanwhile, the Agrium deal, which is still waiting for necessary approvals from federal competition regulators, would see Agrium acquire 232 Viterra farm retail outlets in Canada, a number of farm retail outlets in Australia and other assets.
Glencore is also seeking buyers for Australian malting assets that were acquired in its original deal with Viterra.
Media reports in Australia say at least six companies —Â including Cargill and Malteurop — are expected to submit a final offer for Glencore’s Australian malt business, Joe White Maltings, by the end of July.
Joe White, which professes to be the biggest maltster in the Asia-Pacific region, owns seven malting plants in Australia and reported revenues of more than $250 million (US) in the 12 months ending Oct. 31, 2012.
Some Western Producer editorial staff are members of a different local of the Grain Services Union.
