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Cargill Aims to Complete Metals unit Sale by August, Sources

June 22 (Reuters) - Cargill is aiming to complete the sale of its iron ore ​and steel trading business by late July or ‌early August, four sources with knowledge of the matter said, as the global trading house refocuses on its core food and agriculture operations.

The ​Singapore-based business is sizeable, trading 60 million to ​70 million metric tons of iron ore and 4 ⁠million tons of steel a year, according to Cargill's ​website, making it an attractive target for companies looking to ​expand physical trading.

While the sale of the business was originally scheduled to conclude by late May, the end of Cargill's financial year, it ​has been extended as talks continue with several prospective ​buyers, the sources told Reuters.

Fellow trading house Gunvor is in the conversation, ‌said ⁠one of the four sources and a fifth with knowledge of the matter, alongside Australian investment bank Macquarie Group, which Reuters reported exclusively in early June.

A potential sale price could not ​be immediately ​determined.

All sources sought ⁠anonymity as they are not authorised to speak to media. Macquarie and Gunvor declined to ​comment.

Cargill did not respond to a request ​for comment.

Cargill's metals ⁠unit, headquartered in Singapore, has around 130 employees, information on its website showed.

In 2017, Cargill sold its petroleum business, which included ⁠crude ​oil and oil products, to the ​Australian investment bank.

Reporting by Amy Lv, Pratima Desai and Ella Cao; Additional reporting ​by Lewis Jackson and May Angel; Editing by Muralikumar Anantharaman

Source: Reuters


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