Agrium’s friendly takeover bid for AWB Limited, the former Australian Wheat Board, is expected to be approved by Dec. 3.
AWB shareholders endorsed the bid by Canadian fertilizer maker and farm input retailer Agrium in November.
Calgary-based Agrium will spend $1.1 billion buying AWB Ltd. It will also assume more than $500 million in AWB debt.
AWB shareholders voted in favour of Agrium’s acquisition of all issued and outstanding shares in AWB, with 97.8 percent of shares and 80 percent of shareholders supporting the transaction. The threshold requirements were 75 percent of shares and 50 percent shareholders voting and represented at the meeting.
The legal application to approve the deal was made to the Australian court Nov. 17 and its approval is expected on Dec. 3, after which the integration process can begin, Agrium said in a news release.
Mike Wilson, Agrium’s president and chief executive, said he was pleased with the support shown by AWB shareholders and looks forward to working with AWB employees.
“Agrium’s focus will be to work with our AWB colleagues to enhance efficiencies across the agricultural value chain, including offering new products and services for the benefit of Australian and New Zealand growers once the transaction is finalized.”
AWB was formed in 1939 as the Australian Wheat Board and was the central desk seller until it was privatized in 1999. Its shares began trading on the Australian Stock Exchange in 2001. It lost its monopoly following a scandal where it paid kickbacks to Saddam Hussein regime in Iraq to get wheat supply contracts. Australia’s wheat export marketing system was deregulated July 1, 2008.
In addition to its grain marketing business, AWB also owns Landmark, Australia’s largest farm service company with 400 locations.
Agrium, already the largest agricultural retailer in North America, is keenly interested in Landmark.
