Glencore Xstrata PLC (GLEN.L) is looking to sell its Dakota Growers Pasta Co business as it continues to divest assets acquired from its $6 billion purchase of Canadian grain handler Viterra last year, according to three sources with knowledge of the process.
Glencore is working with Barclays PLC (BARC.L) to sell St. Louis Park, Minnestota-based Dakota Growers in a deal which could value the nation's third-largest pasta maker at $300 million to $400 million, the sources said on Tuesday.
Glencore and Barclays could not be immediately reached for comment.
To please regulators, Glencore has already sold a number of Vieterra assets to Agrium Inc (AGU.TO), CF Industries Holdings Inc (CF.N) and Richardson.
Dakota Growers is likely to draw interest from companies like ConAgra Foods Inc (CAG.N) and Ebro Foods S.A. (EBRO.MC), one of the sources said.
Viterra acquired Dakota Growers for $240 million in March 2010.
(Reporting by Olivia Oran and Soyoung Kim in New York; Editing by Bernard Orr)