Glencore gets Canadian go-ahead for $6.1billion Viterra deal
ZURICH - Agence France-Presse
Swiss commodities trader Glencore's logo is seen in front of its headquarters in Baar, near Zurich, in this February 6, 2012 file photo. REUTERS photo
Swiss commodities giant Glencore has won napproval from Canadian authorities to buy farming product specialist Viterra for $6.1 billion (5.0 billion euros), Glencore said on Monday.
The Canadian minister of industry had approved the deal on Sunday after it was announced in March, Glencore said in a statement.
This deal "recognises the long-term benefits for farmers and Canada," said Glencore's head of agricultural products Chris Mahoney.
The announcement is the latest step in an international approval process and comes after the European Commission agreed at the beginning of July that the purchase could go ahead. Glencore, bases in Baar, central Switzerland, also announced in its statement that China's Ministry of Commerce (MOFCOM) was reviewing the deal.
"Glencore continues to engage with MOFCOM to ensure approval as soon as possible," the company's statement said.
In the next five years Glencore has committed to increasing Viterra's projected capital expenditures in Canada by more than $99 million (80.6 million euros) and will also invest $7.9 million (6.5 million euros) above the group's projected research and development budget.