Canada approves Glencore takeover of Viterra

Canada approved commodities giant Glencore's Can$6.1 billion  takeover bid for Canadian agri-business group Viterra. "I have approved Glencore's application under the Investment Canada Act to acquire control of Viterra," Industry Minister Christian Paradis said in a statement, affirming the deal meets a key criteria as "likely to be of net benefit to Canada." The price offered by Glencore is a premium of 48 percent over Viterra's closing share price on March 8, 2012, days before the Swiss group launched its pitch, backed by Viterra's board of directors. Glencore says it will increase the grain handler's capital expenditures in Canada by more than Can$100 million over five years in an effort to grow western Canada's agricultural industry. Viterra has the largest share of western Canada's grain storage and farm supply outlets, as well as grain storage in Australia. It posted pre-tax profits of Can$368 million and gross assets reaching Can$7.0 billion for its financial year ended October 31, 2011. Ottawa's green light brings the deal closer to final approval. Glencore has already cleared US and Australian regulatory hurdles, but is still awaiting approval from China's commerce ministry.