Glencore sells piece of agri business to BCIMC

TORONTO – Glencore PLC says the British Columbia Investment Management Corp. will pay US$624.9 million cash to buy about 10 per cent ownership in the Swiss company’s agricultural products division, which includes the Viterra grain-handling business.

It’s the second time this year that the Swiss multinational has sold a major piece of Glencore Agri to a Canadian retirement fund manager.

It announced in April that Canada Pension Plan Investment Board would buy 40 per cent of the agriculture products business for US$2.5 billion.

As a result of the sale of 9.99 per cent to BCIMC, Glencore will own 50.01 per cent of the global agricultural products business, Glencore announced from Baar, Switzerland.

Glencore bought Viterra in late 2012 for C$6.1 billion, as the Swiss global commodities trader expanded its presence in agricultural products. It later sold portions of Viterra’s business operations to two Canadian companies.

Glencore Agri currently has operations in Canada, Australia, South America and Europe and employs more than 12,000 people