Glencore bids $6b for Viterra, Canada’s largest grain-handler

As expected, Canada’s largest grain-handler, Viterra is about to change hands. Glencore International is making a cash bid for Viterra at $16.25 a share, which puts Viterra’s value at over $6 billion.

Glencore, a Swiss-based commodity supplier is teaming up with Canadian companies Agrium and Richardson International for its Viterra deal. The deal includes Glencore selling Viterra’s domestic retail business to Agrium and one quarter of the grain-handling assets to Richardson, leaving Glencore focused on Viterra’s overseas assets and avoiding possible antitrust problems.

The deal follows the federal government’s decision to end the monopoly of the Canadian Wheat Board this summer, starting August 1, which is expected to help Viterra’s business, but came under strong criticism of Western farmers and the opposition.