Global commodities giant Glencore and its partners are looking for options to expand their agricultural joint venture Viterra, including specific acquisitions in the Americas and Australia, two sources familiar with the matter said.
The company, formerly known as Glencore Agriculture, made headlines in 2017 for a failed acquisition attempt of Bunge Ltd, one of the largest grain companies. It was then valued at $ 11 billion.
Four years later, its owners haven’t made any major deals and are still exploring ways to show value at a time when grain prices remain high. They are more likely to buy from smaller or private companies, growing primarily in the United States, but also in South America and Australia, where Viterra already has assets, the sources said.
Glencore owns 50% of Viterra and sold the other half to Canadian pension funds CPP Investments and British Columbia Investment Management Corporation (BCI) in 2016, for a total of US $ 3,125 million.
Glencore, Viterra and CPP Investments declined to comment. BCI was not immediately available to comment on the matter.
With an EBITDA (earnings before interest, taxes, depreciation and amortization) of US $ 991 million in the first half of 2021, the company has 180 storage and handling facilities, 30 processing and refining plants and 25 port terminals, in use to process millions of tonnes of grains, oilseeds, pulses, rice, sugar and cotton around the world.
The company’s last deal dates back to 2020, when it bought out its previously unsuccessful stake in Argentina’s Renova soybean grinding plant from its bankrupt partner.
“Evil alcohol lover. Twitter junkie. Future teen idol. Reader. Food aficionado. Introvert. Coffee evangelist. Typical bacon enthusiast.”