Cargill Australia Limited confirmed that Glencore International has accepted its offer to purchase Joe White Maltings. The sales agreement is subject to certain regulatory approvals and the parties expect to complete the transaction prior to the end of 2013.
According to Philippa Purser, Cargill Australia managing director, Joe White Maltings is a strong strategic fit for Cargill Australia and for Cargill's Global Malt business.
"Through its investments over many years, Cargill continues to demonstrate a long-term commitment to the future and success of Australian agriculture and farmers, and we are delighted with this new opportunity in the malting industry," said Ms. Purser. "We look forward to bringing our malt industry expertise and additional capital to Joe White Maltings to continue to grow the business."
Cargill currently operates malting facilities in Europe and the Americas, however it does not have a presence in the Australian malting market. Joe White Maltings is Australia's largest malt producer, with seven plants, and currently supplies brewers in multiple countries in Southeast Asia, as well as Australia.
Doug Eden, president of Cargill's Global Malt business, emphasized this transaction's benefits to customers. "The addition of Joe White Malting will complete Cargill's global footprint in all key barley production areas and enable us to better serve our global and leading regional brewers in the region," he said.
By combining the strengths and talents of both companies, Cargill is confident it can build on Joe White Maltings' proud history, meet the needs of its existing customers and create new opportunities for customers, suppliers, employees and the business.