Commodity giant Glencore is in talks to sell a further 9.9% stake in its agriculture unit, following its agreement to sell a 40% stake to Canada Pension Plan Investment Board (CPPIB) in April, according to a Reuters report.

The report quoted two sources who said Glencore was negotiating with bidders that missed out on the 40% sale.

Bidders for the 9.9% stake – valued at around US$625M – included a different Canadian pension fund, state-backed Saudi Agricultural and Livestock Investment Co (SALIC) and Qatar's sovereign wealth fund, Reuters said.

On 6 April, Glencore confirmed it hold a 40% stake in its agriculture unit for US$2.5bn to CPPIB (see News, OFI May 2016).

The Anglo-Swiss commodity trading and mining giant has been hit by falling commodity prices and has been undertaking a restructuring programme to reduce its debt, including asset sales, reducing capital expenditure, suspending dividend payments and raising US$2.5 billion of new equity capital.

The group said it aimed to cut net debt to between US$17bn and US$18bn by the end of 2016, down from a peak of US$30bn last year, according to the Reuters report.

Glencore trades in grains, oilseeds, rice, sugar and cotton and generated core earnings of US$524M in 2015.