Fertilizer Markets and Finance

The last vestiges of Canada’s iconic farm co-operatives will likely head toward extinction Tuesday when shareholders of Viterra Inc.(VT-T16.02-0.01-0.06%) vote on a takeover bid from Swiss-based Glencore International Inc.

Viterra’s roots go back nearly 100 years to the days when farmers across the prairies banded together to sell their grain. That led to the creation of the Saskatchewan Wheat Pool, which, after some acquisitions, became Viterra in 2007.

Today, Viterra is Canada’s largest grain handling company with operations in Australia and the United States. It also runs a chain of 258 retail stores across Western Canada selling farm supplies.

Glencore, which is better known as a global commodities trader, made an all-cash offer for Viterra in March worth $16.25 a share, or $6.1-billion in total. To make its bid more palatable to Canadian regulators, Glencore struck side deals with Winnipeg-based Richardson International and Calgary-based Agrium Inc. Under those deals, Richardson will purchase 19 of Viterra’s 92 Canadian grain elevators and Agrium will acquire most of Viterra’s retail stores.

Read more at The Globe and Mail

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