Canada's largest grain handler to merge with US company

Viterra Inc. has expanded its agribusiness empire, announcing a merger with Dakota Growers.

Viterra, Canada's largest grain handler and former Saskatchewan Wheat Pool, said Wednesday (Mar 10) it would be offering US$18.23 per outstanding share for the North Dakota firm.

The merger is an ideal fit with Viterra's North American growth strategy and particularly the US pasta consumption market, company executives said, giving the US firm an enterprise value of US$240 million.

''This is right in our wheelhouse,'' chief executive Mayo Schmidt said in a conference call from Calgary. ''We're one of the largest collectors of durum on the continent, so it lines very carefully up with our intention to take the business from seed technology all the way through to processing.''

The proposed Dakota acquisition, expected to close in the second quarter, comes on the heels of Viterra's acquisition of Australia's ABB Grain Ltd. last September.