Cargill exits asset management business with sale of CarVal Investors
Tom Polansek, Reuters
September 12, 2019
CHICAGO (Reuters) - Cargill Inc [CARGIL.UL] has agreed to sell fund manager CarVal Investors, representatives for both companies said on Thursday, marking the commodity trader’s exit from the asset management business.
The sale is the latest transition for Cargill, the largest privately held U.S. company, which overhauled its corporate structure in recent years following a string of disappointing results.
Cargill is selling its economic interest in CarVal, which has about $10 billion under management, to a group of 17 CarVal employees, including its managing principals, chief financial officer and general counsel. The companies declined to disclose the price.
“It’s a sale of the company as well as all the economic interests going forward,” said Jay Olson, Cargill’s treasurer who also chairs CarVal’s board.
Olson will step down as CarVal’s chairman once the deal closes in October and keep his role at Cargill, according to CarVal.
Cargill wants to sell CarVal because Cargill is not actively managing the business, Olson said. The sale is unrelated to challenges facing the U.S. agriculture sector, including the trade war with China that has slowed American farm exports for more than a year, he said.
Cargill reported a 41% drop in adjusted quarterly profit in July, citing supply disruptions stemming from the trade war and also flooding in the United States.
“Cargill would rather, in terms of the businesses we’re managing around the world, be more of a hands-on manager,” Olson said...