AIOCD Asciano Fpo

   By Maria Armental 
 

Glencore PLC has agreed to sell a 9.99% stake in its agricultural business to a large Canadian pension fund as the commodities giant continues to cut its heavy debt burden.

In April, Glencore agreed to sell a 40% stake in the business to Canada Pension Plan Investment Board, Canada's largest pension fund, for $2.5 billion in cash. At the time, Glencore had reserved a right to sell an additional 20% stake.

The latest deal, valued at $624.9 million, involves British Columbia Investment Management Corp., which is also part of an investment group that has made a bid for Australian rail-and-port operator Asciano Ltd.

Under the terms of the deal, British Columbia Investment Management would have the right to appoint a director to the unit's board.

Glencore, which would retain a 50.01% stake, said it would also take off its books about $3.6 billion of the unit's debt.

Switzerland-based Glencore is the world's third-largest diversified mining company by market value.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

June 08, 2016 20:35 ET (00:35 GMT)

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