Glencore/Viterra marriage clears regulators

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No resistance from Canadian, U.S. competition watchdogs
Swiss commodity giant Glencore International has received the all-clear from Canadian and U.S. antitrust watchdogs to buy Canada?s largest grain handler.

Glencore reported Friday it has received a ?no action? letter from the office of Melanie Aitken, Canada?s commissioner of competition on its proposed takeover of Viterra.

The letter, dated Thursday (May 3),?indicat(es) that she does not intend to oppose completion of the previously announced acquisition of Viterra? by Glencore at this time,? Glencore said in a statement.

Aitken?s letter satisfies one of the conditions Glencore needs to conclude its $6.1 billion proposal to buy Viterra.

The company then plans to sell substantial portions of Viterra?s assets to Canada?s No. 2 handler, Richardson International, and to fertilizer and ag retail giant Agrium.

Glencore on Friday also noted that the waiting period in the U.S. under that country?s Antitrust Improvements (Hart-Scott-Rodino) Act expired the previous day.

The Hart-Scott-Rodino Act requires parties to ?large mergers and acquisitions? to file pre-merger notification with the U.S. Federal Trade Commission and Department of Justice. During the ?waiting period? that follows, the two antitrust enforcement agencies analyze the likely competitive effects of the proposed transaction.

The parties may not close a deal until either the waiting period outlined in the Act has expired or the U.S. government grants ?early termination? of the waiting period.

Still to come

As a foreign takeover, Glencore?s planned purchase of Viterra still requires federal government approval and a positive vote from Viterra?s shareholders.

Read more at http://agcanada.com/daily/glencoreviterra-marriage-clears-regulators/
 

aginfo

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Saskatchewan seeks conditions on Glencore's Viterra bid

WINNIPEG, Manitoba (Reuters) - The government of the Western Canadian province of Saskatchewan said on Friday it wants the federal government to impose conditions on Glencore International PLC's C$6.1 billion ($6.1 billion) takeover bid for the country's top grain handler, Viterra Inc, which is headquartered in Saskatchewan.

The federal Conservative government must decide whether the foreign takeover is of net benefit to the country. The independent Competition Bureau is also examining Glencore's plans to sell parts of Viterra to Agrium Inc and Richardson International Limited.

The deal would make Glencore, already the world's biggest diversified commodities trader, a major player in grains alongside Cargill Inc, Archer Daniels Midland Co, Bunge Ltd and Louis Dreyfus Corp.

Saskatchewan released a report on Friday that it commissioned from Informa Economics, which highlights both positive and negative implications of the takeover for the province. As a result, Saskatchewan said it will ask Ottawa to impose conditions on Glencore if it decides to approve the deal.

One concern outlined in the report is Glencore's plan to sell most of Viterra's Canadian farm-supply outlets - which offer seed, chemicals and fertilizer to farmers - to Agrium, a major nitrogen producer and already the top farm supplier in the United States.

"Glencore has a significant global network that will serve as a market for Saskatchewan farmers and a vehicle for increased economic growth in the province," said Saskatchewan Agriculture Minister Bob Bjornerud. "At the same time, we need to ensure there is no adverse effect on competition in farm inputs."

Saskatchewan also wants Ottawa to ensure Glencore keeps its promise to increase capital spending in Western Canada by C$100 million over five years and its promise to make the provincial capital of Regina the headquarters of Glencore's North American agriculture business.

More at http://www.farms.com/news/saskatchewan-seeks-conditions-on-glencore-s-viterra-bid-52175.aspx
 
 
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