Glencore assets sale of little interest to grain handler G3: CEO

Tue Oct 13, 2015 1:55pm EDT
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By Rod Nickel

WINNIPEG, Manitoba (Reuters) - Grain handler G3 Canada Ltd, a joint venture between a Saudi Arabian firm and Bunge Ltd, does not have much interest in bidding for a stake in rival Glencore Plc's agricultural business, its chief executive said on Tuesday.

Swiss-based Glencore, the trader and miner whose shares have been battered by the commodities slump, is looking to sell a stake in its global grains business to cut about a third of its $30 billion in debt and regain investor trust. It has held talks with a Saudi Arabian sovereign wealth fund and China's state-backed grain trader COFCO, along with Canadian pension funds, Reuters has reported.

"I don't really know what it is that Glencore is hoping to do, or whether or not they would even consider an existing competitor in the Canadian market as a viable suitor for the pieces they're trying to sell off," G3 Chief Executive Karl Gerrand told Reuters in an interview.

Glencore's agricultural assets include Viterra Inc [VILC.UL], one of Canada's largest grain handlers.

"Should there be something of interest to us that would make sense, we would certainly look at it, but at this point I'm not really seeing that there is much there that would be of interest to us," Gerrand said.

Gerrand declined to comment on whether G3 has had discussions with Glencore.

Investor group G3 Global Grain Group, a joint venture of U.S.-based oilseed processor Bunge and Saudi Agricultural and Livestock Investment Co (SALIC), bought a controlling stake in the former Canadian Wheat Board this year and renamed the company G3.

It is not clear which Saudi Arabian sovereign wealth fund may have interest in Glencore, but it would not work for SALIC to be a partner in both G3 and Viterra simultaneously, Gerrand said.   Continued...

The logo of Glencore is seen in front of the company's headquarter in the Swiss town of Zug May 9, 2012. REUTERS/Arnd Wiegmann