THURSDAY, JULY 19, 2012
VOL. 90 | NO. 29 | $3.75
PREPARING FOR TAKEOFF | P27
SERVING WESTERN CANADIAN FARM FAMILIES SINCE 1923
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DEDICATION ABOVE AND BEYOND
GLENCORE ACQUISITION | INDUSTRY CANADA APPROVAL
Glencore gets thumbs up Viterra purchase gets go-ahead | The company still has foreign regulations to iron out SASKATOON NEWSROOM
Chet Johnson of Douglas, Wyoming, goes high off the back of Kool Toddy in the saddle bronc event during the final day of the Calgary Stampede Rodeo July 15. For Stampede livestock stories, see page 79. | MIKE STURK PHOTO
Glencore International’s proposed $6.1 billion takeover of Canada’s largest grain company is a step closer to reality. However, the transaction is unlikely to be completed before the beginning of the new crop year as Glencore officials had previously suggested. Glencore officials confirmed July 15 that their plan to acquire Viterra has received approval from Industry Canada. Industry minister Christian Paradis approved the deal July 15, saying it is likely to be a net benefit to Canada. “I have approved Glencore’s application under the Investment Canada Act to acquire control of Viterra,” Paradis said in a news release. “Glencore has made a number of commitments to Canada …. The approval of this transaction demonstrates that our investment policies are working, helping to create jobs, growth and long-term prosperity.” With Industry Canada approval now in hand, the Glencore deal has just a few regulatory hurdles remaining before it can be closed. Among them are approvals from China’s ministry of commerce (MOFCOM), New Zealand’s Overseas Investment Office and Australia’s Foreign Investment Review Board. Viterra officials confirmed that MOFCOM continues to review the deal and that the Chinese review process has moved to the next phase of assessment. However, the MOFCOM process is expected to continue into August, meaning the deal won’t be closed before the beginning of the 2012-13 crop year. Glencore continues to communicate with MOFCOM to ensure approv-
FARM PROGRAMS | GOVERNMENT CUTS
Farmers decry lack of say on AgriStability changes BY BARRY WILSON OTTAWA BUREAU
As federal and provincial agriculture ministers discuss sharp farm
income support cuts in a five-year deal to be signed in September, farmers are demanding a greater say in the process. Support levels under AgriStability
are on the table. “I think they are doing this behind the scenes and then want to present a package to us once it is negotiated,” Canadian Federation of Agriculture
president Ron Bonnett said in a July 16 interview.
SEE AGRISTABILITY CUTS, PAGE 2 »
al of the deal as soon as possible, the company said. Chris Mahoney, director of agricultural products with Glencore, said approval of the deal will result in more investment and continued growth of Western Canada’s agriculture industry. As part of the deal, the Swiss company has promised: • to maintain Viterra’s head office in Regina and make it the headquarters for Glencore’s North American operations • to increase Viterra’s projected capital expenditures in Canada by more than $100 million over five years • to invest an additional $8 million in research and development initiatives, over and above Viterra’s projected expenditures SEE GLENCORE GETS THUMBS UP, PAGE 2 »
u|xhHEEJBy00001pzYv#:^ JULY 19, 2012 Return undeliverable Canadian addresses to: Box 2500, Saskatoon, SK. S7K 2C4 The Western Producer is published in Saskatoon by Western Producer Publications, which is owned by GVIC Communications Inc. Publications Mail Agreement No. 40069240; Registration No. 10676
BY BRIAN CROSS