Seven months after buying all of the assets of ABB Grain of Australia, Viterra has sold one of them.
The company last week said it was selling its 50 percent interest in Australian Bulk Alliance to Summit Grain Investment Pty Ltd.
Summit is a wholly owned subsidiary of Sumitomo Corp. of Japan, which holds the other 50 percent ownership share.
The transaction, valued at $8.6 million Aus (about $8 million Cdn) was expected to close on April 21.
Summit had the right to buy Viterra’s 50 percent under the shareholders’ agreement between ABB (now Viterra) and Sumitomo.
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ABA owns eight country grain gathering sites in the states of Victoria and New South Wales, along with a grain terminal at the Port of Melbourne.
Rob Gordon, president of Viterra’s southeast Asia operations, said the sale won’t affect the company’s ability to serve the Victoria market.
“We have a presence at the Port of Geelong, and with our recent investment in the Panamax-capable port at Outer Harbor, we will be able to draw grain from western Victoria offering export opportunities for those growers,” he said in a news release.
He added that the company has been expanding its range of products and services to growers in Victoria, in areas of grain gathering, wool, fertilizer, container shipments and grain storage.
“We intend to increase our product offerings in Victoria and throughout Australia, and we are developing new marketing opportunities, which capitalize on our international competitive position,” said Gordon.
Australian Bulk Alliance
ABA has a complicated history, which illustrates the changes that the Australian grain industry has undergone in the last decade.
July 1999: Created by GrainCo Australia Ltd. and AusBulk Ltd.
2003: With the merger of GrainCo and GrainCorp Ltd. , Grainco’s 50 percent interest in ABA passed to GrainCorp.
September 2004: ABB Grain took on AusBulk’s 50 percent stake, following the merger of ABB, AusBulk and United Grower Holdings.
November 2004: Sumitomo acquired GrainCorp’s 50 percent share in ABA.
September 2009: Viterra acquired all the assets of ABB Grain, including the ownership stake in ABA.
April 2010: Viterra’s share was sold to a wholly owned subsidiary of Sumitomo, giving the Japanese company full control.
