Cargill plans to complete the sale of its steel business by August

The Australian bank Macquarie Group and the commodities trader Gunvor are said to be among the leading contenders

Global trading giant Cargill expects to finalise the sale of its iron ore and steel trading division in late July or early August, according to Reuters.

This move is part of the company’s strategy to restructure its assets and focus on its core businesses — the food industry and the agricultural sector.

The deal was originally planned to be finalised by the end of May — Cargill’s traditional financial year-end. However, the deadline was extended due to protracted negotiations with several prospective buyers.

Currently, the Australian investment bank Macquarie Group and the international commodities trader Gunvor are cited as the main contenders for the acquisition.

The exact value of the forthcoming deal remains unknown at this stage.

Cargill Metals’ Singapore division is a major and attractive player in the market for companies seeking to expand the scale of their physical trading operations.

According to the company’s official website, the division sells between 60 and 70 million tonnes of iron ore and around 4 million tonnes of steel annually. The division employs around 130 staff.

It is worth noting that this is not the first time Cargill has sold its commodities assets to the Australian bank Macquarie. In 2017, the investment bank successfully acquired Cargill’s oil business, which included trading in crude oil and petroleum products.

As reported by GMK Center, the Romanian steelworks Liberty Galați failed to find a buyer at the second international auction held on 19 June. Although five companies obtained the technical specifications, none provided the necessary letters of guarantee, even though the asset’s starting price had been reduced from €709 million to €463 million.