The Canada Pension Plan Investment Board (CPPIB) has agreed to buy 40 percent of commodities processor Glencore’s agricultural business, Agri Investor reports.
The transaction, which values the equity in Glencore Agri at $6.25 billion, is expected to close in the second half of this year, according to CPPIB.
Glencore’s agricultural operations include production, storage, transport and marketing of grain, oilseeds, cotton and sugar.
The company acquired Canadian grain handler Viterra for $6 billion in 2012. CPPIB’s global head of private investments Mark Jenkins suggested that the investment will be long term: “As an asset class, agriculture is an excellent fit for a long-term investor like CPPIB,” he said in the statement.
The pension launched an agricultural platform in 2012 that includes farmland in the US and the Saskatchewan province Canada. The investment means that CPPIB will be able to appoint two directors to Glencore Agri’s board.
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