6th Apr 2016 07:02
LONDON (Alliance News) - Miner and commodities trading house Glencore PLC on Wednesday said it has entered a deal to sell a 40% stake in its Agricultural Products business to Canada Pension Plan Investment Board for USD2.5 billion.
The sale of the stake in the business values the agricultural arm, which owns agricultural origination and logistics assets across the world, at USD6.25 billion in total.
Glencore also said it has entered into an initial four-year lock-up period with Canada Pension Plan Investment Board to sell up to 20% further stake in the business.
"We are pleased to be partnering with CPPIB as we embark on the next stage of the development of Glencore Agri. Under Glencore's ownership the business has been successfully rebased, particularly following the Viterra acquisition in 2012 and is well-positioned to benefit from long-term global macro and sector trends," said Ivan Glasenberg, Glencore's chief executive.
The deal had been flagged in a Wall Street Journal report on Tuesday.
Shares in Glencore were down 1.3% at 140.00 pence shortly after the market open Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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