March 3, 2008

ABB to buy NZ Grain and Seed

Australia's grains marketer, ABB Grain Ltd., is buying North Island company NZ Grain and Seed Ltd (TAG).

ABB, which is finalising the purchase, said TAG was a corn dryer and major trader. Corn makes up about 10 percent of ABB's compound feed mixes.

ABB managing director, Michael Iwaniw, said the acquisition, when completed, will further integrate ABB's business model in New Zealand with TAG's proximity to grain sources and key markets.

TAG is one of New Zealand's two larger corn dryers; more importantly it's the major trader in the grain, supplying all the key industry players, including Mainland where ABB has got a joint venture to build a new feed mill in South Auckland, Iwaniw said.

The purchase would secure long-term corn supply contracts with growers and expand ABB's commercial relationship with major grain buyers.

The purchase of TAG is subject to completion of transaction documentation.

ABB employs more than 850 staff across Australia and New Zealand with turnover of more than US$1.5 billion each year.