The two companies will have an equal ownership in the joint venture.
“This is about creating a business arrangement that will help build a long-term sustainable business,” said Len Penner, president, Cargill Limited. “Both of our terminals have been underutilised in past years. With P&H as our partner, we’ll make the business stronger by sharing costs and efficiencies. In addition, our combined operations and expertise will help us better serve our customers.”
Cargill and P&H currently operate out of the Thunder-Bay terminal port. This transaction will have Cargill sell its existing assets to the new joint venture and both parties will divert grain to the joint venture.
P&H may in the future operate its terminal to handle commodities not handled by the joint venture. The parties intend to close the deal by 31 May 2013. The new name of the terminal will be determined at a later date.
Source: Cargill
© FoodBev Media Ltd 2024