Glencore considers expansion of agricultural unit

by World Grain Staff
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LAUSANNE, SWITZERLAND — Glencore will consider expanding its agricultural business, following its successful acquisition of Viterra, Tony Hayward Glencore’s chairman said during the Financial Times Commodities Global Summit in Lausanne, Switzerland, April 20-22.

Hayward said the Viterra acquisition three years ago was fantastic for the company, and that if Glencore can find the opportunity to further expand, it will. The Viterra acquisition contributed to an $800 million increase in profit for Glencore’s agricultural division last year.

Ivan Glasenberg, Glencore's chief executive, has said the company is keeping its eyes open for possible acquisition opportunities.

"Do we want to grow? Yeah, if we can find the right assets that generate the right hurdle rate, we will have the money to do it," he told investors in March.

Analysts say the U.S. is a possible location, since Glencore lacks any presence in the nation, which is the world’s biggest grain exporter.

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