Commodities group Glencore has sold a 9.99% stake in its agricultural arm to Asciano suiter British Columbia for a little over US$620 million.
Glencore announced it had entered into a definitive agreement with British Columbia Investment Management Corporation (bcIMC) for the sale of 9.99% of Glencore Agri on June 9.
bcIMC is part of the complex break up and acquisition of Asciano by a Qube-led consortium of foreign investors.
If the deal goes through, bcIMC is to own 5.5% of Asciano’s Patrick container ports business, 11% of its Patrick bulk and automotive port services business, and 12% of its rail business Pacific National.
Glencore made the June announcement after announcing in April it would sell 40% of Glencore Agri to the Canada Pension Plan Investment Board (CPPIB).
CPPIB is also part of the Asciano deal, with a potential 33% future stake in Pacific National if the deal goes through.
Commenting on the transaction with bcIMC on June 9, Glencore boss Ivan Glasenberg said he was pleased to add a new long-term partner in the agribusiness “who shares our vision to capture the significant opportunities we believe will emerge for Glencore Agri over coming years”.
“These transactions highlight the superior value of Glencore Agri, with its advantaged asset footprint and business model, relative to its closest peers. We are very excited that Glencore, as the largest shareholder in the business, will benefit from continued growth of the Business with our new partners,” he said.
bcIMC senior vice president Lincoln Webb added: “”Our investment in Glencore Agri provides an excellent opportunity for bcIMC to increase and diversify our exposure within the agricultural space, a sector we view as critical to supporting rising levels of global prosperity.
“Investing with strong partners and alongside a world-class management team, we believe our long-term investment views and global perspectives align well with the further growth and development of a leading agricultural platform.”