May 5, 2011

Agrium sells AWB grain business to Cargill

Agrium announced that Cargill has received clearance from Australia's Foreign Investment Review Board (FIRB) for Cargill's proposed acquisition of the AWB Australian commodity management business from Agrium.

FIRB has notified Cargill that there are no objections to the proposed acquisition. This follows the Australian Competition and Consumer Commission's approval of the acquisition. As a result, the condition precedent to the Commodities Management Sale Agreement between Agrium and Cargill in relation to regulatory approvals is now satisfied.

On December 15 last year, Agrium reached an agreement with Cargill pursuant to which Cargill agreed to acquire a majority of the commodity management businesses of AWB. Further details of this transaction will be provided upon closing, which is expected within the next two weeks.

"We believe Australian grain growers will further benefit from Cargill's expertise in grain handling and international marketing," said Agrium's President and CEO, Mike Wilson.

Agrium is a major retail supplier of agricultural products and services in North America, South America, and Australia. Agrium is also a global wholesale producer and marketer of three major agricultural nutrients and supplies specialty fertilisers in North America.

Cargill is an international producer and marketer of food, agricultural, financial and industrial products and services. Cargill Australia was established in 1967 to serve the country's large grain export industry and has since extended its involvement into several other agricultural and industrial areas. These areas include oilseed and meat processing, grain and oilseed storage and flour milling.