Macquarie Group to acquire Cargill’s petroleum business
UPDATE June 30, 2017: The sale of Cargill’s petroleum trading business to Macquarie Group was completed on June 30, 2017.
MINNEAPOLIS - March 16, 2017 – Cargill today announced that it has entered into an agreement with Macquarie Group (ASX:MQG) under which Cargill will sell its petroleum business. Cargill Petroleum is a well-respected participant in the crude and products markets globally, with offices in Geneva, Houston, Minneapolis, Shanghai and Singapore. The transaction is expected to close later this year.
“Macquarie is acquiring a petroleum business with a strong team and track record of success,” said David Dines, president, Cargill Energy, Transportation and Metals. “With Macquarie’s strategic focus and commitment to energy and commodities, we are certain this talented team will excel in its organization.”
“Cargill Petroleum consists of a very experienced team of oil industry professionals. This acquisition represents an exciting step for our business, bringing greater reach to the Macquarie platform and positioning us for continued growth,” said Nick O’Kane, global head of energy markets at Macquarie Group.
Cargill will continue to operate in the energy industry. Its financial risk management business offers hedging strategies that utilize derivatives in petroleum, petroleum-based products, petrochemicals, olefins and polymers, as well as in natural gas, power and more than 60 agriculture and metals commodities. Cargill also is active in the biofuels and bio-industrials industries, as well as tankers shipping.
Macquarie is an active participant 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. Macquarie has a strong track record as a participant in the energy markets, with a presence in oil, natural gas, LNG, power and other energy markets globally.
J.P. Morgan acted as exclusive financial advisor to Cargill on this transaction.
Cargill’s 160,000 employees across 70 countries work relentlessly to achieve our purpose of nourishing the world in a safe, responsible and sustainable way. Every day, we connect farmers with markets, customers with ingredients, and people and animals with the food they need to thrive. We combine 154 years of experience with new technologies and insights to serve as a trusted partner for food, agriculture, financial and industrial customers in more than 125 countries. Side-by-side, we are building a stronger, sustainable future for agriculture.
Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Founded in 1969, Macquarie employs more than 13,800 people in over 27 countries. At 30 September 2016, Macquarie had assets under management of US$376 billion. For more information, visit Macquarie.com.