Macquarie Circling Commodities Giant Cargill

By Glenn Dyer | More Articles by Glenn Dyer

Macquarie Group (MQG) is reported to be close to buying the global oil business of US commodity giant, Cargill Inc.

No price was mentioned in media reports in the US at the weekend which said terms of the deal have been agreed upon, but could take several weeks finalise.

The deal comes as Cargill has spent the past year revamping its business amid a nearly three-year slump in global commodity prices.

In January, sources said that Cargill sold its US gas and power business to commodities trader and investor TrailStone Group, according to Reuters

In late 2015 Australian steelmaker, BlueScope bought Cargill’s 50% stake in the North Star steel making joint venture in the US for $US720 million.

A Cargill spokeswoman told Reuters said the company continues to operate its US gas and power business and its global oil business, but declined to comment on the acquisition by Macquarie. Macquarie also declined to comment.

But the media reports add Macquarie had also bid on Cargill’s gas and power business, a source said.

Cargill started a review of its oil and gas and metals businesses midway through 2016. The sales to Trailstone and now Macquarie are the results of that review.

The deal comes as Macquarie approaches the end of its 2016-17 financial year on March 31.

Macquarie shares ended at $87.72 on Friday. They are up just on 0.7% so far in 2017 while the ASX 200 is up 0.76%.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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