Macquarie Group to acquire Cargill’s North America Power and Gas business
UPDATE: The sale of Cargill's North America Power and Gas business to Macquarie Group was completed on September 15, 2017.
MINNEAPOLIS – Cargill has reached an agreement to sell its North America Power and Gas business to Macquarie Group (ASX:MQG), a global provider of banking, financial, advisory, investment and funds management services.
Cargill’s North America Power and Gas trading business is well-respected in the industry, with offices in Calgary, Houston and Minneapolis. This transaction is expected to close in calendar year 2017 and follows Macquarie and Cargill’s previously announced agreement under which Macquarie will acquire Cargill’s global petroleum business. That sale is also expected to close in the second half of the calendar year.
“Cargill’s power and gas business has built and maintained strong relationships with customers across the North American power grid and gas line system for 20 years,” said David Dines, President of Cargill Energy, Transportation and Metals. “Macquarie has long-standing financial services expertise and a dedicated focus on the global energy sector. We believe it can effectively lead this business into the future."
“The acquisition of Cargill’s North America Power and Gas trading business expands the geographic and service coverage in key markets for Macquarie in the region. We are excited to bring Macquarie capabilities to clients in these regions, and see immediate benefits for our clients through broadening our platform in this sector. Together with our acquisition of Cargill Petroleum, we see a historical opportunity for continued growth and customer engagement across the energy spectrum,” said Nick O’Kane, Global Head of Commodities at Macquarie Group.
Cargill remains active in the energy industry through several businesses, including financial risk management which offers hedging strategies that utilize derivatives in petroleum, petroleum-based products, petrochemicals, olefins and polymers, and more than 60 other energy, agriculture and metals commodities. Cargill also is involved in biofuels, bio-industrials and tankers shipping.
Macquarie has a significant presence in the energy and commodities industries. Its business has evolved over more than three decades to provide clients with access to markets, financing, financial hedging and physical execution. The company has a strong track record in global energy markets, including oil, natural gas, LNG, power and other sources of energy.
J.P. Morgan acted as exclusive financial advisor to Cargill on this transaction.
Anna Lovely, 952.984.3413, [email protected]
Stephen Yan, 212.231.1277, [email protected]
Cargill provides food, agriculture, financial and industrial products and services to the world. Together with farmers, customers, governments and communities, we help people thrive by applying our insights and 150 years of experience. We have 155,000 employees in 70 countries who are committed to feeding the world in a responsible way, reducing environmental impact and improving the communities where we live and work.
Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Founded in 1969, Macquarie employs 13,597 people in over 27 countries and has assets under management of US$369 billion (as at March 31, 2017). For more information, visit Macquarie.com.