Glencore sells Australian malt producer Joe White to Cargill
GLENCORE Xstrata yesterday said it has agreed to sell Australia’s largest malt producer, Joe White Maltings, to agriculture giant Cargill.
The sale is subject to regulatory approval and is expected to close by the end of 2013.
The deal value was undisclosed by Glencore in yesterday’s announcement but is reportedly worth A$420m (£244m).
Joe White was acquired by the miner-trader as part of its acquisition of Canadian grain handler Viterra back in 2012, significantly boosting Glencore’s position in the agriculture sector.
Australian agriculture assets have been the focus of M&A activity recently. US-headquartered agribusiness Archer Daniels Midland struck a deal to buy Australian grain handler GrainCorp for $2.8bn (£1.8bn) earlier this year.
Joe White has seven plants in Australia, producing more than 550,000 tonnes per year. The firm supplies brewers in Singapore, Japan, Thailand, Vietnam, Korea, Indonesia, Cambodia, Papua New Guinea, Philippines and Malaysia, as well as in Australia.
Glencore Xstrata shares closed 0.6 per cent higher at 289.60p.