Agrium Inc. is a major Retail supplier of agricultural products and services in North and South America, a leading global Wholesale producer and marketer of all three major agricultural nutrients and the premier supplier of specialty fertilizers in North America through our Advanced Technologies business unit.
Agrium lands deal to acquire AWB for $1.1 billion
Calgary-based fertilizer company Agrium (TSX and NYSE: AGU) has entered into a definitive agreement to acquire Australian grain marketer AWB for approximately CAD $1.1 billion or $1.4 per share, beating out competitive bidder GrainCorp`s reported $829 million offer.
AWB has advised that it considers the Agrium offer superior to that of local Australian grain handler GrainCorp`s, Agrium said.
“The combination of Agrium and AWB provides significant strategic and financial benefits to a wide array of stakeholders. We are particularly excited about the future of working with AWB employees to reinvest in the business and bring a greater choice of products and services to AWB’s grower customer base,” said Agrium President and CEO Mike Wilson.
Under AWB`s existing agreement with GrainCorp, AWB is required to provide three days notice to GrainCorp before changing or withdrawing its recommendation to shareholders. The waiting period expires Monday, at which point Agrium anticipates that AWB will recommend the new deal.
Agrium announced its unsolicited bid for AWB earlier this week as a means to establish a presence in Australia. According to Agrium, the deal will help its strategy of growing its retail business, while also assisting AWB by enhancing the company`s product and service offerings.
Last year, Agrium was involved in a hostile bid for fertiliser group CF Industries Holdings, expressing interest in its North American assets.
Agrium is currently up 0.73% to $71.53 on the Toronto Stock Exchange.
AWB was formed in 1939 as the Australian Wheat Board and was Australia's statutory grain marketing authority for over 60 years. Operations are conducted through two main divisions: Landmark and Commodity Management. Landmark Rural Services is Australia's largest distributor of merchandise and fertilizer, with over 400 locations across Australia and New Zealand providing a diverse range of rural services including rural merchandise, crop chemicals, fertilizer, livestock, wool marketing, agronomy services and real estate agency services.
Agrium is a major fertilizer company with operations in Canada, the United States and Argentina. It produces potash, nitrogen and phosphates as well as controlled release fertilizers and micronutrients. The company has more than 11,000 employees.