Andersons shares up after Bloomberg report hints Glencore interest

By Reuters

Mar 23, 2015 02:42 AM EDT

Shares of U.S.-based agribusiness Andersons Inc (ANDE.O) jumped more than 6 percent on Friday, outpacing the sector, after a Bloomberg News report speculated that Glencore PLC (GLEN.L) could be interested in acquiring the company.

The story mentioned Glencore's interest in expanding its agricultural assets and named Ohio-based Andersons Inc as well as privately held companies Scoular Co and Lansing Trade Group LLC as possible targets, citing unnamed people familiar with Glencore's thinking.

Glencore declined to comment and Andersons could not be immediately reached for comment.

Swiss-based Glencore, a mining company and commodities trader, expanded its agriculture portfolio in 2012 with its $6.1 billion purchase of Canadian grain handler Viterra Inc.

More recently, Glencore bought a 50 percent stake in a northern Brazilian grain export terminal from Archer Daniels Midland Co (ADM.N) for an undisclosed sum.

Glencore has said it is interested in acquisitions in the United States, the world's largest agricultural exporter and a market dominated by ADM, Bunge Ltd (BG.N), Cargill Inc [CARG.UL] and Louis Dreyfus [LOUDR.UL], known as the ABCDs of global grain trading.

Andersons businesses include grain handling, rail car leasing and turf products. The company also produces corn-based ethanol biofuel at four plants in the Midwestern United States.

Shares of Glencore rose 4.7 percent on the London stock exchange. Andersons gained 6.2 percent on Nasdaq at mid-afternoon.

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