Agrium Inc.’s (AGU) sale of AWB Limited's (“AWB”) Commodity Management Business received Australia's Foreign Investment Review Board’s (“FIRB”) approval.
On December 15, 2010, Cargil Incorporated and Agrium reached a definitive agreement whereby Agrium would sell majority of its commodity management businesses of AWB to Cargill.
FIRB has approved the proposed acquisition. This follows the Australian Competition and Consumer Commission's approval of the acquisition.
The previous day, Agrium also announced that it has successfully completed the purchase of a 100% equity position in CerealToscana S.A., a fertilizer distribution company in Italy and Agroport, its subsidiary in Romania. The transaction was worth $27-million plus working capital.
CerealToscana and Agroport have 90,000 tons of storage with key distribution assets in Livorno and Ravenna, Italy along the Danube in Romania. They sell an estimated 400,000 tonnes of fertilizer per year including commodity and specialty products.
Including this purchase, Agrium Europe currently leases and owns 400,000 tonnes of dry and liquid storage in Europe with expected annual sales of 2.8 million tonnes of all three major nutrients.
Agrium faces stiff competition from CF Industries Holdings Inc. (CF) and Potash Corp. of Saskatchewan Inc. (POT).
Currently, Agrium maintains a Zacks #3 Rank (short-term Hold recommendation) over the next one-to-three months.
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