Democracy Gone Astray

Democracy, being a human construct, needs to be thought of as directionality rather than an object. As such, to understand it requires not so much a description of existing structures and/or other related phenomena but a declaration of intentionality.
This blog aims at creating labeled lists of published infringements of such intentionality, of points in time where democracy strays from its intended directionality. In addition to outright infringements, this blog also collects important contemporary information and/or discussions that impact our socio-political landscape.

All the posts here were published in the electronic media – main-stream as well as fringe, and maintain links to the original texts.

[NOTE: Due to changes I haven't caught on time in the blogging software, all of the 'Original Article' links were nullified between September 11, 2012 and December 11, 2012. My apologies.]

Tuesday, March 20, 2012

Glencore strikes deal for Viterra

Glencore International PLC has made a friendly cash bid for Viterra Inc. (VT-T15.92-0.05-0.31%) for $16.25 per share.

The Swiss conglomerate is making the offer in conjunction with Canada’s Agrium (AGU-T88.202.462.87%) and Richardson International.

“Viterra employees created a world-class agribusiness, of which I am very proud. This has been recognized by Glencore and its partners, and this transaction creates value and opportunities for employees, our communities, farmers and customers in all the markets we serve,” Viterra chief executive officer Mayo Schmidt said in a statement.

Glencore, already in a merger deal with Xstrata, isn’t swallowing Viterra whole. It announced plans to sell the bulk of Viterra’s retail business to Agrium for $1.8-billion, and an almost one-quarter stake in its grain-handling assets to Richardson for some $800-million.

“The acquisition of Viterra reflects our strong belief in the importance and future potential of the Canadian and Australian grain markets,” said Chris Mahoney, Glencore’s director of agricultural products.

Glencore also made a bid for the hearts and minds of Canada’s farmers.


“Glencore is confident the acquisition of Viterra will deliver significant overall benefits to grain farmers,” it said.

“The transaction will give farmers access to Glencore’s unparalleled global distribution channels and increase their ability to export their product into international grain and oilseeds markets. Glencore’s global reach and expertise will provide farmers with strong protection from market volatility, more options to market their grain and oilseeds and more competitive pricing resulting from Glencore’s wider markets access and its more consistent demand for grains and oilseeds.”

Breaking up Viterra will likely ease antitrust concerns, particularly after the deregulation of the Canadian Wheat Board, which gives the company a leg up.

Viterra had said on Monday it was in exclusive talks with one prospective buyer, but did not identify a suitor.

Analysts have said a deal that splits Viterra three ways is unlikely to disrupt Glencore’s blockbuster tie-up with Xstrata – a prize it has been working towards for years – and was instead a reflection of the trader’s opportunistic approach to acquisitions. The Viterra deal comes as the Canadian Wheat Board’s monopoly on Western Canadian wheat and barley is slated to end this year.

In Viterra, Glencore and partners will acquire the leading Canadian handler of spring wheat, canola, barley and oats.

Glencore describes itself as the one of the leading exporters of grain from Europe, the former Soviet Union and Australia. It commanded almost 9 per cent of the global market for grains at the time of its listing last May.

Original Article
Source: Globe
Author: paul waldie

No comments:

Post a Comment