2 Min Read
HOUSTON (Reuters) - Australian bank Macquarie will acquire Cargill Inc's North America power and gas business for an undisclosed amount, the companies said on Friday.
The deal comes just months after Macquarie agreed to buy Cargill's global petroleum business. That sale is expected to close in the second half of this year.
Commodities trader Cargill has been streamlining its business in the past year following a nearly three-year slump in global oil prices. The company said it will remain active in energy through several businesses, including financial risk management, biofuels and tanker shipping.
Cargill offers power and natural gas trading, storage and transportation.
The company originally planned to sell the power and gas business to commodities trader and investor TrailStone Group, which is funded by Riverstone Holdings, a private equity group. That bid fell through, sources told Reuters in May.
Cargill's power and gas business has offices in Calgary, Houston and Minneapolis. The deal is anticipated to close in late 2017.
J.P Morgan served as a financial adviser to Cargill on the transaction.
Reporting by Liz Hampton; Editing by Chris Reese and Cynthia Osterman