Canada Pension Plan Investment Board, Toronto, announced Wednesday that one of its subsidiaries has agreed to purchase a minority stake in Glencore Agricultural Products, a news release said.
The board, which oversees the assets of the C$282.6 billion ($217.1 billion) Canada Pension Plan, Ottawa, said the purchase of 40% of the grain and oilseed business from Glencore PLC is valued at $2.5 billion.
“As an asset class, agriculture is an excellent fit for a long-term investor like CPPIB, and we are excited about the opportunity to acquire a significant stake in Glencore Agri, a leading agricultural business,” said Mark Jenkins, CPPIB's senior managing director and global head of private investments, in the news release.
Glencore's portfolio includes agricultural infrastructure assets in Canada and Australia, the release said.
CPPIB spokeswoman Mei Mavin said Glencore will still own a majority stake at 60%, following the closing of the purchase, which is expected in the second half of 2016.