Glencore has agreed to divest its warehousing and logistics business, which operates as Access World, to Infinity Logistics and Transport Ventures for HK$13.74bn ($176.7m) in cash.
Headquartered in Switzerland, Access World is mainly involved in providing the storage of commodities such as ferrous and non-ferrous metals in warehouses, logistics services, and other value-added services.
The firm’s other services include collateral management, metal cutting and packaging, screening and crushing of bulk ferro alloys, and import and export customs clearance.
Glencore had acquired the business in 2010 when it was operating as Pacorini Metals. In 2016, the business was renamed Access World.
The warehousing and logistics business of Glencore is said to cater to all major commodity markets, including ferrous and non-ferrous metals, oil and gas, project cargo and polymers.
Access World is claimed to have more than 300 warehouses in more than 25 countries. Some of these are approved to store materials to be warranted on the London Metal Exchange (LME) and Commodity Exchange (COMEX).
The warehousing and logistics firm has a workforce of over 1,000 people in different parts of the world.
For the year ended 31 December 2020, Access World earned revenue of around $372.5m.
Its buyer, Infinity Logistics and Transport Ventures, is a Malaysia-based logistics service provider.
According to Infinity Logistics and Transport Ventures, the acquisition aligns with its strategy to enlarge its full chain logistics services to capture the growing business opportunities.
Besides, it will help bolster its cash flows and financial position, said the Malaysian firm.
Infinity Logistics and Transport Ventures further stated that the combination of the two firm’s customer network, sales force, and other resources and expertise is expected to drive its business growth.
Recently, Glencore has announced a partnership last month with Managem to produce cobalt from recycled battery materials in Morocco.
