Western Expresso

[CGY]

Originally Posted by Nathan

It's possible, but I'm guessing there may be some hurdles with competition concerns. They can announce a sale, but it will probably be a little while before it's completely through all the regulatory approvals.

Yes, that's correct. The deal with need approval from the Competition Bureau as well as the Minister of Industry under the Ivestment Canada Act. It sounds like Viterra will be broken up and sold in pieces to Agrium, Glencore and Richardson, so any competition concerns will likely be alleviated. The feds will likely want some undertakings from the buyers before providing Investment Canada Act approval... I'm sure Mr. Wall will be pushing to keep jobs in Regina, but seeing that Richardson and Agrium are already established in Winnipeg and Calgary, this may lead to some issues. It will be interesting to watch this unfold.

Don't forget the deal will also need shareholder approval from Viterra shareholders.

[djforsberg]

Originally Posted by CGY

Yes, that's correct. The deal with need approval from the Competition Bureau as well as the Minister of Industry under the Ivestment Canada Act. It sounds like Viterra will be broken up and sold in pieces to Agrium, Glencore and Richardson, so any competition concerns will likely be alleviated. The feds will likely want some undertakings from the buyers before providing Investment Canada Act approval... I'm sure Mr. Wall will be pushing to keep jobs in Regina, but seeing that Richardson and Agrium are already established in Winnipeg and Calgary, this may lead to some issues. It will be interesting to watch this unfold.

Don't forget the deal will also need shareholder approval from Viterra shareholders.

It was reported today that the majority of head office jobs will remain in Regina. Also, that it is pretty much a done deal (the chances of shareholders voting it down is slim).

[Nathan]

Originally Posted by CGY

Yes, that's correct. The deal with need approval from the Competition Bureau as well as the Minister of Industry under the Ivestment Canada Act. It sounds like Viterra will be broken up and sold in pieces to Agrium, Glencore and Richardson, so any competition concerns will likely be alleviated. The feds will likely want some undertakings from the buyers before providing Investment Canada Act approval... I'm sure Mr. Wall will be pushing to keep jobs in Regina, but seeing that Richardson and Agrium are already established in Winnipeg and Calgary, this may lead to some issues. It will be interesting to watch this unfold.

Don't forget the deal will also need shareholder approval from Viterra shareholders.

They won't be splitting the company evenly into thirds. Richardson and Agrium will be taking parts that align with their specialities/business. This wouldn't alleviate competition concerns. I believe Richardson is the #2 grain handler in Canada next to Viterra, so combining 1 and 2 would have a huge market share. And I know Agrium is #1 in their business (not sure where Viterra's operations place them). But in any case, I don't think this will be an easy process through the Competition Bureau.

As for shareholders, chances are they'd probably cash in as the price will be around a 45% premium over where the stock was a month ago.

Edit: From the sounds of it, Glencore would keep 77% of the grain handling business, which could alleviate some of the competition concerns and maintain their operations in Regina (as a new entrant, it would probably be the easiest solution to utilise an already set up head office), so those two moves probably will go a long way in gaining support from the different levels of government. Not sure about the fertilizer/Agrium part of the deal... But it will be interesting seeing what happens with the market without the CWB.

[thefourthtower]

Glencore to acquire Viterra for $6.1B, make Regina its HQ






By Bruce Johnstone, Leader-Post March 20, 2012 11:03 AM


Read more: http://www.leaderpost.com/business/G...#ixzz1pg6dlkEZ

[CGY]

Originally Posted by Nathan

They won't be splitting the company evenly into thirds. Richardson and Agrium will be taking parts that align with their specialities/business. This wouldn't alleviate competition concerns. I believe Richardson is the #2 grain handler in Canada next to Viterra, so combining 1 and 2 would have a huge market share. And I know Agrium is #1 in their business (not sure where Viterra's operations place them). But in any case, I don't think this will be an easy process through the Competition Bureau.

As for shareholders, chances are they'd probably cash in as the price will be around a 45% premium over where the stock was a month ago.

Edit: From the sounds of it, Glencore would keep 77% of the grain handling business, which could alleviate some of the competition concerns and maintain their operations in Regina (as a new entrant, it would probably be the easiest solution to utilise an already set up head office), so those two moves probably will go a long way in gaining support from the different levels of government. Not sure about the fertilizer/Agrium part of the deal... But it will be interesting seeing what happens with the market without the CWB.

Glencore should offer to pay for a good chunk of the stadium construction in consideration for naming rights! That would definitely get Brad Wall and the residents of Saskatchewan onside!

[cutterp]

Milky Way will be opening this Thursday. Possibly push it to Friday if they don't get a piece of equipment fixed.

Source, the owner.

[BrannyMuffin]

Originally Posted by cutterp

Milky Way will be opening this Thursday. Possibly push it to Friday if they don't get a piece of equipment fixed.

Source, the owner.

I don't eat ice cream much but seeing Milky Way open just puts me in a good mood!

[thefourthtower]

OP BUSINESS STORIES
Glencore’s plans for Regina: Big house on the prairie
MICHAEL BABAD | Columnist profile | E-mail
Globe and Mail Update
Published Tuesday, Mar. 20, 2012 12:08PM ED

Follow Michael Babad and Globe top business news on Twitter

Glencore makes plans for Regina
Having watched the turmoil of BHP Billiton's failed bid for Potash Corp. of Saskatchewan, Glencore International Inc. is wrapping itself in a prairie flag in its $6.1-billion deal to acquire and break up Viterra Inc. (VT-T15.91-0.06-0.38%).

Viterra Inc. (VT-T)
15.91 -0.06 -0.38%
As of Mar 20, 2012 4:00
Range:1 Day 5 Day 1 Year View Larger Chart Add to Watchlist
Agrium (AGU-T)
87.60 1.86 2.17%
As of Mar 20, 2012 4:00
Range:1 Day 5 Day 1 Year View Larger Chart Add to Watchlist

VIDEO
A market milestone to remember
Glencore announced today it reached a deal for Viterra at $16.25 a share, and will sell the bulk of its target's retail business to Agrium Inc. (AGU-T87.601.862.17%) and an almost one-quarter stake in its grainhandling assets to Winnipeg's Richardson International.

Breaking up the company and promising grand things for Saskatchewan, Alberta and Manitoba will help the company when it comes to antitrust and nationalist concerns.

Not only will many assets remain in Canadian hands, but Glencore went out of its way in its statement today to pledge to "consolidate Viterra's executive offices in Saskatchewan and make the Regina head office the platform for its North American agricultural operations and for expansion into the United States."

It promised to be a "strong corporate citizen" in Alberta and Manitoba, as well, pledged to enhance Viterra's charitable initiatives, and announced plans to help fund wheat research in agriculture and education.

[cutterp]

Originally Posted by cutterp

Milky Way will be opening this Thursday. Possibly push it to Friday if they don't get a piece of equipment fixed.

Source, the owner.

It's official. 11am this Thursday it will be open.

[vid]

http://babbletees.com/products/carto...ap-graphic-tee



Let's all get one and then meet up this summer for a group photo of us all wearing our Early 20th Century Map of Winnipeg shirts!

[Stormer]

http://business.financialpost.com/20...__lsa=b05a73a9

Peg to scoop Regina head office jobs?

[Nathan]

Originally Posted by Stormer

http://business.financialpost.com/20...__lsa=b05a73a9

Peg to scoop Regina head office jobs?

They're gaining 22% of the business. Glencore is still retaining the rest (and they'll be about the same size), and they want to expand throughout North America, so I think there is some pretty good times in the future for Regina too. That and Alliance Grain Traders is already based in Regina (they've been rapidly growing the last decade or so), and Agribition also gives Regina a piece of the international agriculture scene (granted livestock seems to be the biggest part). It'll be a little battle royale, and probably a few years until the dust settles.

But yes as the article mentions, it'll all depend on who can woo whom with what.

[Treesplease]

Originally Posted by Stormer

http://business.financialpost.com/20...__lsa=b05a73a9

Peg to scoop Regina head office jobs?

Curt Vossen, president of Richardson:
“But I think there is also opportunity for Winnipeg and the government of Manitoba to step forward and make good arguments for why Glencore should have some of its activities based out of Winnipeg, because this is and remains the centre of the grain trade. So we will certainly be encouraging the government to do that.”

Nice! What is the Mb government going to bring to the argument that Richardson and the gravity of the existing "centre of the grain trade" can't? taxpayers money?

[trueviking]

there is no question that regina will lose jobs in this, while winnipeg and calgary will gain....no multi-national conglomerate absorption of a local company has ever meant more jobs.....at least not in the short term.......never mind the fact that the canadian part of the company is becoming 50% smaller.

it is good that they have pledged to stay in Regina.....the city had better work hard to keep them, because their motivation to move will be strong down the road....there is a big difference between being the hq of the largest grain company in the country and being the national office of an international company....allegiances are not the same.

it wouldn't surprise me in the least if cargill and glencore were both in calgary in 10 years.

[trueviking]

Originally Posted by vid

http://babbletees.com/products/carto...ap-graphic-tee



Let's all get one and then meet up this summer for a group photo of us all wearing our Early 20th Century Map of Winnipeg shirts!

just ordered mine!.....beauty.

[Treesplease]

Originally Posted by trueviking

there is no question that regina will lose jobs in this, while winnipeg and calgary will gain....no multi-national conglomerate absorption of a local company has ever meant more jobs.....at least not in the short term.......never mind the fact that the canadian part of the company is becoming 50% smaller.

it is good that they have pledged to stay in Regina.....the city had better work hard to keep them, because their motivation to move will be strong down the road....there is a big difference between being the hq of the largest grain company in the country and being the national office of an international company....allegiances are not the same.

it wouldn't surprise me in the least if cargill and glencore were both in calgary in 10 years.

No question Regina will lose jobs and Calgary will gain?
Most of the jobs that will be made redundant such as the chiefs and senior VPs are in Calgary and will be lost to existing positions in Switzerland. The balance of the senior officials that will be required to maintain operations will be moved back to Regina from Calgary - or so it goes on paper. The fertilizer distribuition postions in Regina that will be lost to Calgary are few - in the 5-10 range (these numbers are a few years old granted). It may have been the largest grain operation in the country but the local company was just that - the local operations - which may become the regional operations - again, on paper at this point.

I have no idea what the net Regina/Winnipeg balance will be. I just hope none of my tax $ gets tossed about. We are still paying for the last time government tried buying jobs and created expectations of pork for the private sector in the 80s.

[trueviking]

ok...thats good for regina....amazing that 1/3 of the comapny ($2b worth) could be sold off and it would have such little effect....i cant say i'm convinced that a company can be sold to a multinational and then divided in half and it would not have significant negative impact....there are few examples of that happening.

now we in winnipeg have to work on stealing back what was rightfully ours in the first place

[rypinion]

Originally Posted by trueviking

ok...thats good for regina....amazing that 1/3 of the comapny ($2b worth) could be sold off and it would have such little effect....i'll take your word for it.

now we in winnipeg have to work on stealing back what was rightfully ours in the first place

The pieces that Richardson and Agrium are buying are likely to have most of their employees out in the country (at the elevators and retail locations) compared to the head office, however they still need a decent number of accountants, logistics, merchandisers, marketing, information systems, engineering, etc. None of those jobs are "senior management" and all of those would likely be in Regina right now (and I would guess would likely be in Calgary/Winnipeg later).

[Treesplease]

I was surprised to find out how few positions in Regina were directly related to the fertilizer end of things - most positions are in the field.

[Treesplease]

Originally Posted by rypinion

The pieces that Richardson and Agrium are buying are likely to have most of their employees out in the country (at the elevators and retail locations) compared to the head office, however they still need a decent number of accountants, logistics, merchandisers, marketing, information systems, engineering, etc. None of those jobs are "senior management" and all of those would likely be in Regina right now (and I would guess would likely be in Calgary/Winnipeg later).

okie dokie.
Why would they be in Calgary? Isnt JRI going to lure them all to Winnipeg?