A short and quiet week on the M&A front with news focusing rather on what was not happening in South Africa.

Exchange-Listed Companies

Glencore is to dispose of its 50% stake in virtually integrated business, Viterra, which is focused on the global agricultural product value chain. Viterra is to be merged with Bunge, a company connecting farmers to consumers to deliver food, feed and fuel globally. The deal is expected to realise significant value to Glencore. Under the terms of the agreement, Glencore will receive c.$3,1 billion in Bunge stock (32,8 million shares, representing 15% in the combined group) and $1 billion in cash.

Glencore (take three). The company continues in its quest to implement a deal with Teck Resources with the company proposing an alternative offer to acquire the steelmaking coal business Elkview Resources (EVR). While the financial details of a proposed transaction were not disclosed, the latest proposal provides a middle ground for both companies – an exit for Teck Resources from the coal business and the option for Glencore to split its business into CoalCo and MetalsCo. Glencore’s first prize remains a merge with Teck Resources and a demerge of the coal business, having offered $8,2 billion to Teck shareholders who did not want exposure to the coal business.

Telkom has, it is reported, rejected the latest offer from the Maseko-led consortium with the Business Times reporting that the consortium had offered R46 per share for a controlling stake. Management has requested that the consortium provide further clarity on several matters including the proposed offer price and certainty of funding.

DealMakers is SA’s M&A publication.
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