DAVIDSON—The Viterra grain-handling terminal in Davidson is one of 19 country elevators that Richardson International will buy as part of a $6.1 billion deal to sell Viterra to Glencore International, a Swiss commodities conglomerate.
Last Tuesday, Richardson International, a Winnipeg-based grain company, announced it will buy in excess of $900 million worth of Viterra assets, including grain handling, crop input and processing facilities, that Glencore plans to divest.
In a news release, Richardson stated that after the successful acquisition of “these assets, current employees at the selected locations will be offered the opportunity to join the Richardson team.”
In cases such as Davidson where there are both Viterra and Richardson grain elevators, the company encourages people to continue working with existing contacts.
Until the deal goes through, Richardson has not determined what’s going to happen in communities where there is a duplication of assets, a company spokesperson said.
Richardson International’s announcement came just after Glencore International and Viterra ended a week’s worth of speculation by announcing that Glencore International would purchase Viterra for $16.25 per share.
Also in the news release, Glencore stated it had agreed to sell Viterra assets to Agrium and Richardson International, which the company expected “to result in the creation of a more robust competitive landscape for Canadian farmers.”
Calgary-based Agrium will acquire the majority of Viterra’s retail agri-products business for $1.8 billion.
Each of the deals requires regulatory approval to proceed.
Perhaps to head-off any concerns in Saskatchewan about the loss of head office jobs in Regina, Glencore stated it will consolidate Viterra’s executive offices in Saskatchewan, making the Regina head office its platform for Glencore’s North American agricultural operations and for expansion into the United States.