Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UPDATE 1-Macquarie to buy Cargill's global oil business -sources

Published 04/03/2017, 06:41 am
Updated 04/03/2017, 06:50 am
© Reuters.  UPDATE 1-Macquarie to buy Cargill's global oil business -sources
MQG
-

(Adds Cargill comment)

HOUSTON, March 3 (Reuters) - Australian bank Macquarie Group Ltd MQG.AX is planning on buying Cargill Inc's CARG.UL global oil business, according to people familiar with the matter, marking the second energy business the global commodities trader has shed this year.

Terms of the deal have been agreed upon, but the integration could take several weeks or longer, one of the sources said.

The deal comes as Cargill has spent the past year streamlining its business amid a nearly three-year slump in global commodity prices. In January, sources said that Cargill sold its U.S. gas and power business to commodities trader and investor TrailStone Group. Cargill spokeswoman said the company continues to operate its U.S. gas and power business and its global oil business, but declined to comment on the acquisition by Macquarie. Macquarie also declined to comment.

Macquarie had also bid on Cargill's gas and power business, a source said.

Privately held Cargill in January reported a higher quarterly profit, buoyed by strong results in its meats and U.S. crops business. banks exited physical oil trading following the implementation of the Dodd-Frank Act's financial reform. President Donald Trump in February signed an executive order that would scale back the act, potentially creating a better environment for banks to trade physical commodities. TrailStone buys Cargill's power and gas group - sources

Cargill profit jumps on strong meat demand, big U.S. crops

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.