It appears there is a lot of interest in Canada's grain companies. The major global leaders are in a bidding war for Viterra.
Viterra Sets Up ‘Process’ After Getting Buyer Interest
businessweek.com
From the article:"...Archer Daniels Midland Co. (ADM), Bunge Ltd. (BG) and Noble Group Ltd. (NOBL) are in Viterra’s so-called data room after being told they must offer at least C$16 a share, dealReporter said yesterday, citing a person familiar with the situation whom it didn’t identify. Glencore is in “advanced talks” with Agrium Inc. (AGU) and Richardson International Ltd. about a joint bid for Viterra, the Financial Times said, citing industry executives it didn’t identify. A formal bid may come next week, the newspaper said...."
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I own positions in all the bidders but not Glencore International Plc. It never made it on my radar.
I wonder why I missed Viterra as they own all of the types of assets I find attractive.
From the article:"...The company’s elevators and port terminals are well placed in Canada and Australia to serve growing demand from Asia, Zandberg said. Viterra owns more than half the grain-export capacity in Canada and all ports in South Australia, according to the company. Canada is the fourth-biggest wheat exporter after the U.S., Australia and Russia, according to the U.S. Department of Agriculture...."
I still think many of the large Ag plays are still undervalued especially from the bids we are seeing for Viterra. Once the market figures how cheap these global companies are selling, I suspect we will see them bid higher based on the comparable assets they already own around the world.
EKS |
