Glencore agrees to sell further stake in agriculture business

Glencore has agreed to sell a further 9.99% stake in its agricultural business to Canada Pension Plan Investment Board, Canada’s largest pension fund.

The Canadian pension fund in April purchased a 40% stake in the business for $2.5bn, which at the time Glencore reserved the right to sell an extra 20% holding.

The additional 9.99% in Glencore Agri has been sold for $624.9m. The deal involves British Columbia Investment Management Corp., which is also part of an investment group that has made a bid for Australian rail-and-port operator Asciano Ltd.

Under the deal, British Columbia Investment Management will be able to appoint a director to the division’s board.

Glencore will retain a 50.01% stake in the business. The group said the latest transaction will help reduce the unit’s debt by about $3.6bn.

Shares rose 0.21% to 146p at 0822 BST.