http://www.telegraph.co.uk/finance/commodities/9136122/Glencore-in-3.5bn-bid-for-Canadian-grain-giant-Viterra.html
(3,5 billion pounds converts to 5.435 billion CAD
The Sunday Telegraph understands the approach by the commodities and mining giant triggered Viterra's statement to the Toronto Stock Exchange on Friday that it had received an unsolicited expression of interest from third parties.
In a sign that he intends to press ahead with Glencore's expansion strategy despite being in the midst of a £53bn merger with Xstrata, chief executive Ivan Glasenberg is understood to want to bolt Viterra on to its growing grain business.
Earlier this year The Daily Telegraph disclosed that Glencore is searching for an individual with knowledge of the agriculture market to join as a non-executive director.
Glencore's agricultural arm controls 8.7pc of the "addressable" global grain market. Its agricultural business had sales of $10.4bn (£6.6bn).
Chris Mahoney, head of Glencore's agriculture arm, is one of the company's richest senior staff members, with a 2.08pc shareholding worth £588m based on Friday night's closing price of 408.7p.
Shares in Viterra rose 24pc following Friday's announcement, giving a market capitalisation of CAN$5bn (£3.2bn).
Glencore's approach comes at an opportune time, as the Canadian government passed a law last year ending the Canadian Wheat Board's market monopoly.
Viterra currently controls 45pc of Canada's grain handling market.
In addition, in November 2011, Viterra's biggest shareholder, Alberta Investment Management rejected its proposed board of directors, calling them "unresponsive."
A Glencore spokesman declined to comment.
(3,5 billion pounds converts to 5.435 billion CAD
The Sunday Telegraph understands the approach by the commodities and mining giant triggered Viterra's statement to the Toronto Stock Exchange on Friday that it had received an unsolicited expression of interest from third parties.
In a sign that he intends to press ahead with Glencore's expansion strategy despite being in the midst of a £53bn merger with Xstrata, chief executive Ivan Glasenberg is understood to want to bolt Viterra on to its growing grain business.
Earlier this year The Daily Telegraph disclosed that Glencore is searching for an individual with knowledge of the agriculture market to join as a non-executive director.
Glencore's agricultural arm controls 8.7pc of the "addressable" global grain market. Its agricultural business had sales of $10.4bn (£6.6bn).
Chris Mahoney, head of Glencore's agriculture arm, is one of the company's richest senior staff members, with a 2.08pc shareholding worth £588m based on Friday night's closing price of 408.7p.
Shares in Viterra rose 24pc following Friday's announcement, giving a market capitalisation of CAN$5bn (£3.2bn).
Glencore's approach comes at an opportune time, as the Canadian government passed a law last year ending the Canadian Wheat Board's market monopoly.
Viterra currently controls 45pc of Canada's grain handling market.
In addition, in November 2011, Viterra's biggest shareholder, Alberta Investment Management rejected its proposed board of directors, calling them "unresponsive."
A Glencore spokesman declined to comment.
Comment