Reuters: Deals: Glencore plans three-way Viterra split-source

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Glencore plans three-way Viterra split-source Mar 16th 2012, 14:11 Tweet Share this Email Print Related News Glencore plans three-way Viterra split-source 10:08am EDT Viterra opens up for bidding war, shares jump 12:03am EDT Canada eases curbs on foreign telecom ownership Wed, Mar 14 2012 Glencore seen in hunt for grain handler Viterra Tue, Mar 13 2012 Only a few can afford Viterra: BMO Capital Markets Mon, Mar 12 2012 Analysis & Opinion Glencore faces fight to land $5.5 bln Viterra deal Related Topics Deals » Global Deals Review: 2011 Q3 » Global Deals Review: 2011 Q2 » Global Deals Review » Inflows Outflows » Swiss commodities trader Glencore's logo is seen in front of its headquarters in Baar, near Zurich, February 6, 2012. Credit: Reuters/Romina Amato By Victoria Howley LONDON | Fri Mar 16, 2012 10:11am EDT LONDON (Reuters) - Glencore (GLEN.L) is planning a three-way carve-up of Canada's largest grain handler Viterra (VT.TO), an industry source said, to help navigate a politically charged federal review process if it wins the looming bidding war for the company. Earlier reports said that commodity trading giant Glencore, also bidding for mining group Xstrata (XTA.L), was planning to launch a joint offer with two Canadian companies, privately-owned grain trader Richardson International and fertilizer producer Agrium (AGU.TO). The industry source told Reuters that Glencore would instead buy all of Viterra and then sell its retail fertilizer business to Agrium, with Richardson taking the food processing unit in a rare and complex so-called "back-to-back" transaction. Viterra said this week it had established a process for considering expressions of interest from parties it declined to name, which sent the stock up 10 percent. Reuters reported previously that U.S.-based Bunge (BG.N) and Archer Daniels Midland (ADM.N) had made approaches along with Glencore. A foreign takeover of Viterra would be subject to a federal government review to determine whether it is of "net benefit" to Canada. The government vetoed a takeover of Potash Corp (POT.TO) by Anglo-Austalian mining giant BHP Billiton (BLT.L) in 2010, damaging the country's image as a free market supporter. Ottawa may be less likely to block a foreign bid for Viterra, however, because its home province of Saskatchewan has already said it doesn't see the company as a strategic resource and does not collect royalty revenues from it, unlike Potash. Glencore declined to comment. (Reporting by Victoria Howley; Editing by Chris Wickham and Helen Massy-Beresford) Global Deals Review: 2011 Q3 Global Deals Review: 2011 Q2 Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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