INVESTMENT: CPPIB pays US$2.5B for 40% of Glencore’s agriculture business

TORONTO – The Canada Pension Plan Investment Board (CPPIB) has purchased a 40% equity interest in Glencore’s agricultural business for US$2.5 billion payable upon closing. The transaction values the entire agribusiness unit at US$6.25 billion. Glencore’s agribusiness includes wheat, corn, barley, oilseeds, oil seed products, cotton and sugar. Infrastructure to support the business includes more than 200 storage facilities, 31 processing facilities, and 23 ports around the world. During 2015 the business had reported earnings of US$524 million and its assets were valued at US$10.87 billion. When the deal closes, the agribusiness board will become independent of the Glencore board. It will consist of five members: CEO Chris Mahoney, two directors appointed by CPPIB and two by Glencore. Please see either www.Glencore.com or www.CPPIB.com.