In the story that seemed like it would never end. China has finally approved the Glencore purchase of Viterra. Many people in the industry were starting to question whether the deal would actually ever happen due to the constant delays and extensions of the deadline.
According to the press release:
This was the final outstanding regulatory approval of Glencore’s acquisition of Viterra pursuant to a court approved plan of arrangement (the “Arrangement“). Glencore now expects the effective date of the Arrangement to be Monday, December 17, 2012, as a result of Viterra and Glencore having agreed to extend the date for completion of the Arrangement. On the effective date of the Arrangement, Glencore will release the funds to be subsequently paid out to shareholders and holders of Viterra’s CHESS Depositary Interests (CDIs). The necessary arrangements will also be made to delist Viterra from the Toronto Stock Exchange and the Australian Securities Exchange.
There was much speculation regarding the potential of China to block the deal due in reaction to Canada’s attitude towards CNOOC purchasing Nexen.
According to the Globe and Mail, this is was the last hurdle in the deal closing. Not only will Glencore quire the Viterra assets according to the deal but the Richardsons and Agrium parts of the deal will be completed as well.