Published By : 06 Sep 2013 | Published By : QYRESEARCH
The deal that was poised to make Agrium Inc the dominant farm retailer in Canada is almost nearly sealed with a go-ahead from Canada\'s Competition Bureau. The acquisition will see Glencore Xstrata PLC sell multiple Viterra farm retail stores to Agrium, a leading Canadian fertilizer company.
Agrium the largest seller of fertilizer, seeds and chemicals in the US, will now add an additional 210 Glencore stores across western Canada to its portfolio. With the regulatory go-ahead, officials from Agrium are now focused on closing the deal in a few weeks’ time.
Agrium has been on an acquisition and growth spree this year, having acquired 13 Viterra locations in Australia as recently as June 2013.
Viterra, Canada’s largest grain handler was bought over by Swiss commodities trader Glencore in 2012, following which Glencore retained a majority of Viterra’s Canadian and Australian grain storage and processing facilities. In a bid to alleviate political concerns associated with this major foreign takeover, Glencore inked deals with Agrium and Richardson International Inc-both Canadian companies-to divest some assets.
However, Glencore’s deal with Agrium has not been without its share of hiccups, as a number of farmers had asked the Competition Bureau to reject the deal to prevent Agrium from becoming all-too-powerful in the fertilizer and crop supply retail sector. Agrium is also the third-largest maker of nitrogen globally.