Viterra under takeover speculation so a bit of an effect on graincorp. "Glencore International AG and Cargill Inc. are among companies that are interested in possibly buying Canadian agribusiness heavyweight Viterra Inc., according to people familiar with the matter, as a wave of consolidation in the industry swells.
Viterra disclosed Friday that it received "expressions of interest" from unidentified third parties, sending the Calgary-based company's stock price soaring on expectations of a takeover. The company is now expected to run a sale process, exploring the interest of a handful of possible buyers, the people said.
Viterra operates grain-marketing and distribution businesses across Canada, the U.S., Australia, New Zealand and China. Switzerland's Glencore is a commodities-trading powerhouse that moves and markets everything from grain to oil and coal around the world. It is currently attempting a $90 billion merger with Xstrata PLC, a big metals and coal-mining company in which it already holds roughly a one-third stake.
Viterra shares rose 24% Friday to 13.58 Canadian dollars (US$13.71) in Toronto, giving it a market capitalization of C$5.05 billion (US$5.1 billion). Its shares also trade in Australia.
Scarcity of supply and booming global demand has prompted all manner of commodities players to seek mergers in recent years. In addition to the proposed Glencore-Xstrata tie-up and a number of mining deals, BHP Billiton in 2010 made an unsolicited $38.6 billion offer for Potash Corp. of Saskatchewan Inc., the world's largest fertilizer producer, in a bet that developing economies will drive up demand for the world's food supply. The deal ultimately fell apart, however, amid political opposition in Canada."
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