Australia OKs Glencore Takeover of Viterra
Australian regulator Foreign Investment Review Board (FIRB) has given its full nod to the $5.9 billion takeover bid of Glencore International plc over dual-listed grain handler Viterra Inc.
Australia's approval came after Canadian regulators, led by Canadian Industry Minister Christian Paradis, earlier this month approved the proposal. It also came after the June approval from Australia's competition regulator.
However, one last ordeal is still needed, and that is the approval by China's Ministry of Commerce, with its review expected to continue into August.
One of the world's largest commodities suppliers, Glencore International Plc in March submitted a proposal to acquire Viterra Inc. at C$16.25 per share. Viterra Inc. owns almost all grain storage capacity in South Australia. It also has the largest share of Western Canada's grain storage and farm supply outlets.
"We have noted the process improvement undertakings made by Viterra in its responses to the South Australian Post Harvest Working Group Review in the 2010/11 season and we are committed to implementing them," Chris Mahoney, director of agricultural products of Glencore International Plc, said in a statement.
"In addition, we intend to work closely with the Australian Competition and Consumer Commission (ACCC) to further refine access arrangements governing South Australian grain ports."
Headquartered in Canada, Viterra Inc. has operations across Canada, the United States, Australia, New Zealand and China, as well as a growing international presence that extends to offices in Japan, Singapore, Vietnam, Switzerland, Italy, Ukraine, Germany, Spain and India.
In the first half of its 2012 financial year, it has posted a net profit of $141.2 million.