Canada’s government has agreed with Glencore International on an extension of the federal review period for the Swiss commodity giant’s proposed friendly takeover of Viterra.
A federal government review and approval are required for takeovers of larger Canadian companies under the Investment Canada Act. The government’s approval period had been originally set to run until Monday (June 18), Glencore said Friday.
Glencore said it has agreed with Industry Minister Christian Paradis on a 30-day extension.
The extension notwithstanding, the company said it "remains focused on achieving all regulatory approvals… in time for the closing of the transaction which is expected to be by the end of July 2012."
Glencore’s proposed takeover of Canada’s largest grain handler still also requires the approvals of the Australian government as per that country’s Foreign Acquisitions and Takeovers Act, and the New Zealand Office of Overseas Investment.
Competition regulators in Canada, the U.S. and Australia have already said they won’t oppose the takeover.
Other approvals already granted include that of Ontario Superior Court of Justice, as per the Canada Business Corporations Act, and that of Viterra’s shareholders, who voted in favour of the deal at a meeting in Calgary late last month.
Canada’s Competition Bureau still must rule on Glencore’s parallel plans to sell substantial chunks of Viterra’s handling, processing and ag retail assets to two Canadian agribusiness giants, Agrium and Richardson International.
A successful conclusion to those two deals, however, is not a condition of Glencore’s takeover agreement with Viterra.
Glencore confirmed as Viterra’s six billion dollar suitor, March 20, 2012