Viterra Inc. has confirmed a report that they are in discussions regarding a possible strategic transaction with ABB Grain Ltd.

These discussions are ongoing and the parties are engaged in continuing negotiations and due diligence activities. No transaction has been agreed to at this time, the current discussions are non-binding and no assurance can be given that any agreement on a transaction will be reached.

ABB has also confirmed the report, stating it has received a conditional, non-binding takeover approach from Viterra.

The proposal was within the range of A$9 (US$6.3) to A$9.50 (US$6.7) per ABB share and comprised a mix of cash, Viterra shares and franked dividends, said ABB.

The acquisition could cost up to A$1.58 billion (US$1.1 billion), according to the Australian Financial Review.

ABB said the proposal is subject to a number of conditions, and that it has appointed JP Morgan as financial adviser.

ABB Grain is a leading Australian agribusiness with a multi-faceted operation and international focus. ABB's diversified operations stretch across the entire supply chain. The company's core business divisions include national supply chain, grain marketing, malt and rural services. ABB employs 1100 staff across its divisions throughout Australia and its international operations.

Viterra Inc. is Canada's leading agribusiness, with extensive operations and distribution capabilities across Western Canada, and with operations in the US, Japan, Singapore and Geneva. The company is diversified into sales and services of crop inputs and equipment, grain handling and marketing, livestock feed, agri-food processing and financial products.