Glencore close to agreeing part-sale of agriculture unit, reports say

Glencore is nearing an agreement to sell a large chunk of its $6bn Viterra agriculture unit to the Canadian Pension Plan Investment Board, according to reports.

On Tuesday, just after the stock market session closed in London, a report emerged about the potential sale from a Wall Street Journal reporter.

The FTSE 100 company announced on 4 April it had sold its Komarovskoye gold deposit in Kazakhstan for $100m to UK-listed, Russia-focused Polymetal.

Debt-laden Glencore admitted in December it was examining a potential initial public offer (IPO) of the Viterra business amid talks about the potential sale of several infrastructure assets.

Chief executive Ivan Glasenberg stipulated at the time that the company would not sell its majority stake in the unit unless "someone throws a massive number".

Afterwards the miner increased its planned target of reducing debt and preserving capital to the tune of $13bn (£8.6bn), after September's debt reduction initiatives that included a target of $10.2bn. So far $8.7bn of the target has already been locked in.

The WSJ later reported that CPPIB might take up to a 40.0% stake in the commodities trader in exchange for as much as $2.4bn.

Talks with the Canadians were said to be at an advanced stage, but it was not guaranteed that the two sides would reach a final agreement.

Glencore's shares, which had risen from just over 90p at the end of December to above 160p at times last month, had fallen 5% on Tuesday 141.85p.

Sovereign wealth funds and Asian trading houses also tabled offers for Glencore, WSJ said.