Glencore Agri sale queried by competition regulator

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The Australian Competition and Consumer Commission (ACCC) has raised concerns over Glencore’s proposed sale of a 40% stake in Glencore Agri to Canada Pension Plan Investment Board.

The ACCC is concerned about the control CPPIB will have over the agri freight rail transport sector given a combination of the Glencore Agri stake and CPPIB’s interest in the Pacific National rail network: Pacific National controls 75% of all grain transported by rail on the east coast of Australia.

The $2.5 billion sale is an important one for Glencore if it is to meet its target of reducing debt from $18 billion to $7 billion by the end of the year. It has also agreed a sale of a 9.99% stake in Glencore Agri to the British Columbia Investment Management Corporation.