Agri-food giant Cargill has signed a letter of intent to enter a joint venture agreement with Parrish and Heimbecker (P&H) that would have both companies jointly owning and operating Cargill’s Thunder Bay grain terminal. The two companies will have an equal ownership in the joint venture.
“Both of our terminals have been underutilized in past years,” said Cargill president Len Penner in a May 2 statement. “With P&H as our partner, we’ll make the business stronger by sharing costs and efficiencies. In addition, our combined operations and expertise will help us better serve our customers.”
Both companies operate out of the Thunder Bay port. Cargill will sell its existing assets to the new joint venture and both parties will divert grain to the joint venture. P&H may in the future operate its terminal to handle commodities not handled by the joint venture. The deal closes May 31.
“We are looking ahead at the promise that this new venture with Cargill will bring for our customers,” said John Heimbecker, P & H president.
The companies said unionized employees at both terminals share a common collective agreement and the new joint venture will continue to abide by the current agreement.
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