Viterra takeover approved

OTTAWA — The federal government signed off Sunday on Glencore International PLC’s bid to acquire Canadian agribusiness giant Viterra Inc, bringing the Swiss commodities supplier’s multi-billion dollar transaction one step closer to completion.

OTTAWA — The federal government signed off Sunday on Glencore International PLC’s bid to acquire Canadian agribusiness giant Viterra Inc, bringing the Swiss commodities supplier’s multi-billion dollar transaction one step closer to completion.

The $6.1 billion bid was approved by Industry Minister Christian Paradis under the Investment Canada Act.

“I approve an application under the act if I am satisfied that the investment is likely to be of net benefit to Canada,” Paradis said in a statement.

“Glencore has made a number of commitments to Canada.”

Glencore released a statement Sunday emphasizing its commitments to investing in Regina-based Viterra’s (TSX:VT) operations and to growing western Canada’s agricultural industry.

“We are very pleased to receive Investment Canada approval, which recognizes the long term benefits for farmers and Canada from our acquisition of Viterra,” Chris Mahoney, Glencore’s director of agricultural products, said in a statement released Sunday.

Glencore had said it expects to get all of the regulatory approvals it needs to close the transaction by the end of July.

But it now suggests it may not meet that deadline as it waits for a review approval from the Ministry of Commerce in China, where Viterra has operations.

Glencore also requires final approval from New Zealand’s Overseas Investment Office and Australia’s Foreign Investment Review Board.

The company said it will provide an update on when it expects the deal to close “in due course.”

Glencore has agreed to increase Viterra’s projected capital expenditures in Canada by more than $100 million over five years and has said it will contribute to “grain industry initiatives” in Manitoba.

It has also committed to maintaining Viterra’s Regina head office and said it will make the location the headquarters for its North American agricultural operations.

Glencore also plans to invest $8 million in Viterra’s projected expenses in research and development and plans to work with the Saskatchewan government to establish a Global Institute for Food Security in the province.

Last month the Competition Bureau said it wasn’t challenging the deal, though it is weighing subsequent sales of Viterra (TSX:VT) assets to Calgary-based Agrium Inc. (TSX:AGU) and Winnipeg-based Richardson International.

A U.S. statutory waiting period for antitrust review has expired, and Australia’s competition watchdog has approved the transaction.

The deal also has the blessings of shareholders and the Ontario Superior Court of Justice.

Just Posted

Feds to post deficits $8B bigger than expected over next two years: PBO report

OTTAWA — The Trudeau government is on track to run deficits nearly… Continue reading

Kinder Morgan bungled pipeline public relations: poll

The survey suggests 58 per cent of Canadians believe the company is to blame for poor perceptions

Calgary Flames name Peters as replacement for fired head coach Gulutzan

The 53-year-old from Three Hills, Alta., resigned as head coach of the Carolina Hurricanes

The Latest: UK leader congratulates royals on birth of son

LONDON — The Latest on the royal baby birth: 1:50 p.m. British… Continue reading

G7 ministers agree to call Russia out on ‘malign’ behaviour, Johnson says

TORONTO — Ministers from the G7 countries have committed to taking Russia… Continue reading

Replay Red Deer April 22, 2018

Watch weekly news highlights from Red Deer and Central Alberta

As Osoyoos Indian Band flourishes, so too does Okanagan’s wine tourism

Indigenous practices have driven growth of South Okanagan’s wine history and agricultural influence

Van runs into pedestrians in Toronto

TORONTO — Police say multiple pedestrians have been struck by a van… Continue reading

Loblaw Companies tax court trial over Barbadian banking subsidiary starts

TORONTO — A tax court trial involving Loblaw Companies Ltd. and allegations… Continue reading

As trial winds down, DA downplays Cosby travel records

NORRISTOWN, Pa. — Prosecutors highlighted gaps in Bill Cosby’s travel records on… Continue reading

Summer Movie Preview: Hollywood roars back into action

LOS ANGELES — Summer starts early this year in Hollywood with the… Continue reading

5 things to know as William and Kate have 3rd child

LONDON — Like everything to do with Britain’s royal family, a mix… Continue reading

Plane not de-iced before crash near remote Saskatchewan community: safety board

FOND DU LAC, Sask. — Investigators say a plane that crashed near… Continue reading

Toys “R” US ends Canadian stores auction with Fairfax as the only bidder

TORONTO — Toys “R” Us Inc. will seek approval to sell its… Continue reading

Most Read

Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month