Cargill Inc. is selling its North America Power and Gas business to Macquarie Group, the Australian investment bank, in the second transaction between the two firms in recent months.
The Wayzata-based commodities trader and agribusiness giant announced Friday afternoon it expects to finalize the sale by the end of 2017. The business is responsible for trading, transporting and selling electricity and gas in North America. Terms of the deal were not disclosed.
In March, Cargill announced plans to sell its petroleum business to Sydney-based Macquarie later this year. The two transactions combined diminish Cargill's role in the energy sector, but the company will remain in the space through its energy risk management business that provides hedging services and through its biofuels and tankers shipping.
"Cargill's power and gas business has built and maintained strong relationships with customers across the North American power grid and gas line system for 20 years," said David Dines, president of Cargill energy, transportation and metals, in a release. "We believe [Macquarie] can effectively lead this business into the future."
The move is the latest in a series of Cargill divestitures. The company has spent the last two years reorganizing its major business units in an effort to reduce costs and increase efficiency.
Cargill's North America Power and Gas business employs about 100 people in its Houston, Minneapolis and Calgary, Alta., offices, a relatively small number compared to Cargill's worldwide employee base of 150,000 in 70 countries. Macquarie employs more than 13,000 people in 27 countries.