Reuters — Shares of U.S.-based agribusiness Andersons Inc. jumped more than six per cent on Friday, outpacing the sector, after a Bloomberg News report speculated that Glencore could be interested in acquiring the company.
The story mentioned Glencore’s interest in expanding its agricultural assets and named Ohio-based Andersons as well as privately held companies Scoular Co. and Lansing Trade Group as possible targets, citing unnamed people familiar with Glencore’s thinking.
Glencore declined to comment and Andersons could not be immediately reached for comment.
Swiss-based Glencore, a mining company and commodities trader, expanded its agriculture portfolio in 2012 with its US$6.1 billion purchase of Canadian grain handler Viterra.
More recently, Glencore bought a 50 per cent stake in a northern Brazilian grain export terminal from Archer Daniels Midland for an undisclosed sum.
Glencore has said it is interested in acquisitions in the U.S., the world’s largest agricultural exporter and a market dominated by ADM, Bunge, Cargill and Louis Dreyfus, known as the ABCDs of global grain trading.
Andersons’ businesses include grain handling, rail car leasing and turf products. The company also produces corn-based ethanol biofuel at four plants in the U.S. Midwest.
Shares of Glencore rose 4.7 per cent on the London stock exchange. Andersons gained 6.2 per cent on Nasdaq at mid-afternoon.
— Reporting for Reuters by Karl Plume in Chicago.