Reuters: Mergers News: UPDATE 1-Canada minister cites Glencore's marketing reach

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UPDATE 1-Canada minister cites Glencore's marketing reach Mar 26th 2012, 15:38 Mon Mar 26, 2012 11:38am EDT * Farm minister says Glencore has diverse marketing avenues * Says farmers need access to global markets to feed world * Remarks signal little concern about deal OTTAWA, March 26 - Canadian Agriculture Minister Gerry Ritz highlighted the global marketing reach of Swiss-based commodities trader Glencore on Monday, when asked to comment on Glencore's bid to acquire big Canadian grain handler Viterra. Ritz said Canada is one of the few countries that can help meet growing global demand for food, which he said would increase by 50 to 70 percent in coming decades. "It's going to take trade at the global level to make that happen. Certainly companies like Glencore have different avenues of marketing than Viterra has," he told reporters on a conference call from South Korea. Ritz said Viterra, the country's biggest grain handler, itself has operations in several countries and is "not simply a Canadian company either". Ritz is one of several Canadian officials who have suggested there is little concern among government policymakers about Glencore's C$6.1 billion ($6.2 billion) deal to buy Viterra, which must be given the final stamp of approval by Ottawa. Prime Minister Stephen Harper said on Sunday that the structure of Glencore's proposed takeover means it should not necessarily be seen as a normal foreign takeover bid. He said the interest in expanding the Canadian agriculture sector was "a good thing." As part of its deal, Glencore plans to sell off some parts of Viterra to Canada's Richardson International and Agrium . Saskatchewan Premier Brad Wall, who successfully opposed BHP Billiton's 2010 attempted takeover of Saskatchewan-based fertilizer producer Potash Corp, has also signaled less concern about the deal for Viterra, which has its head office in the province, saying it is not a strategic resource. Under Canada's foreign investment law, any large acquisition of a Canadian company by a foreign investor is subject to a government review to determine whether it is of "net benefit" to the country. The Competition Bureau will also study the deal to see if it lessens or prevents fair competition in any market. Link this Share this Digg this Email Reprints

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