Glencore Raises Stake to Majority Holding in Argentine Soy JV
Glencore has strengthened its soy processing and supply chain in Argentina by acquiring a further 16.67 percent in Renova, a soy joint venture Glencore has held since 2006 with its partner Vicentin, a diversified agribusiness and one of the largest soy and soy product exporters in Argentina. This deal brings Glencore’s stake in Renova to 66.67 percent.
Renova’s holdings in Argentina include a soy processing facility in Timbues that was built in 2012 and later expanded last year. The plant has a daily soy crushing capacity of 32,500 tons, and includes its own port facility where it loads soybeans, soybean meal, and corn for shipment to overseas markets.
The deal comes at a difficult time for Vicentin, which in early December 2019 announced that it was facing financial challenges, and was undertaking a restructuring of its debt payments. Additionally, the USDA stated that Vicentin halted crushing operations at some of its sites, and was also pursuing the sale of select facilities, and appealing to the Argentinian government for assistance.