Glencore Plc looking to sell stake in agricultural business to CPPIB, report says

Miner and commodity trader Glencore Plc is within advanced foretells sell a stake in its agricultural business to Canada Type of pension Investment Board (CPPIB), the Wall Street Journal reported, citing people acquainted with the matter.

The CPPIB would have a stake of up to 40 per cent, valuing the business at approximately $6 billion, the Journal reported on Tuesday, citing a source.

Glencore and CPPIB declined to comment.

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The Canadian pension fund likely won an auction Glencore continues to be running, along with a deal might be announced as soon as this week, the Journal reported.

The Swiss trading giant had said recently it would offload more assets to shore up its finances to deal with a commodities rout and to cut down its debt.

Glencore had earlier lifted its target for disposals by $1 billion to $4 billion-$5 billion and said hello aimed to finalize the sale of the minority stake in the agriculture business within the second quarter.

In October, the company was at talks having a Saudi Arabian sovereign wealth fund and China’s state-backed grain trader COFCO, together with Canadian pension funds, to market a stake in its agricultural assets, according to sources familiar with the problem.

? Thomson Reuters 2016