Cargill Sells Futures Subsidiary to REFCO for Nearly $400 Million

Cargill Inc. continues to streamline its operations with the sale of its London-based Cargill Investor Services division to the REFCO Group Ltd. for up to $400 million.

Cargill has been focusing for the past five years on expanding its core food and agribusinesses. Under the proposed deal, REFCO will pay the Cargill unit $208 million and make contingent payments of $67 million to $192 million depending on how well the operations perform.

CIG executes trade of futures and options contracts on behalf of other customers. Phillip Bennett, President and Chief Executive Officer of REFCO, says CIS' business model complements REFCO's. "The combined operations of REFCO and CIS will provide our clients with enhanced capabilities in markets that are of increasing importance globally."

The transaction is expected to close in one to two months, subject to Hart-Scott-Rodino and other regulatory clearances. The transaction is also subject to contractual closing conditions.