CANADA – Cargill has announced that through its Winnipeg-based Canadian arm, it has agreed to sell its grain and crop input assets in Ontario to an agri-food company, La Coop federee.
The Amierican commodities conglomerate will sell 13 grain assets and crop inputs retail assets to La Coop, whose operations involve seeds, fertilizers, and crop protection products across Canada.
Cargill has also sold its 50% stake it held in a joint venture, South West Ag Partners including grain handling sites at Becher, Grande Pointe, Rutherford, Tupperville and Wallaceburg, plus a share in South West-owned Palmerston Grain and in ‘all grain satellite relationships’.
However, the sale does not include the Cargill export terminal in Sarnia, the AgResource crop inputs wholesale business or other Cargill grain and crop inputs assets in Canada.
The company said that finalization of the transaction will take place upon the completion of definitive agreements and any required regulatory reviews, which are expected the second quarter of the calendar year.
“Cargill continually evaluates its assets to ensure its sites are operating efficiently and are competitive in the areas it serves,” said Dave Baudler, managing director for Cargill’s grain business.
“After an in-depth evaluation of our grain and crop inputs businesses in Ontario, we came to the conclusion that a sale of those assets was the best path forward to remain competitive and deliver on our growth strategy.
La Coop federee was the buyer of choice to ensure a smooth transition for employees and customers.”
Cargill said it will maintain the operation of 40 crop inputs retail locations, 26 elevator assets, five export terminals, and two oilseed processing facilities to serve growers throughout the country.
La Coop federee is a cooperative of agricultural producers in Quebec, previously known as Cooperative federee de Quebec, founded in 1922.
Cargill’s assets complement its retail network and grain trading business, which include four crop input terminals, 16 locally-owned joint-venture retailers and a grain trading group.
“We are confident that existing customers will benefit greatly from our experience and expertise in providing crop input, grain handling and merchandising services in the region, and from having access to a broad agribusiness retail network that reaches well beyond Ontario, with over a hundred affiliated locations across Canada,” added Sebastian Leveille, executive agribusiness vice-president for La Coop federee.