|Ottawa Approves Viterra Sale|
|Written by Neil Billinger|
|Monday, 16 July 2012 13:15|
The federal government has given the go-ahead for Glencore International to purchase Canada's largest grain handling company.
Swiss-based Glencore will pay $6.1 billion for Viterra.
Industry Minister Christian Paradis says he only approves applications that are likely to be of net benefit to Canada.
Deputy Liberal Leader Ralph Goodale would like to see improved foreign investment rules and procedures.
"There is no way by which those promises can be made readily enforcible. We all hope that the company will do what it has promised to do. (However) in other cases of foreign investment, companies have made those promises and then just walked away."
Goodale wants to see bonds posted to ensure that all promises are kept.
Glencore has committed to having its North American head office for agricultural operations located in Regina. It has also agreed to increase Viterra's projected capital expenditures in Canada by more than $100 million over five years.
Glencore was hoping to have all of the regulatory approvals to close the transaction by the end of July. It says the deadline may not be met because it is waiting for approval from the Chinese Ministry of Commerce.