June 3, 2009

ABB Grain Ltd. said Tuesday (June 2) that the Australian competition regulator doesn't propose to intervene with Viterra Inc.'s takeover of the Australian grain exporter.

Last month, Canada's Viterra proposed taking over ABB Grain by offering investors between A$9.11 (US$7.50) and A$9.41 (US$7.75) a share, valuing the company around A$1.6 billion, to build its scale in Asia.

ABB's directors have unanimously recommended Viterra's offer.

"The transaction remains subject to regulatory, shareholder and court approvals, as well as other conditions," the Adelaide-based company said in a statement.

About 45 percent of ABB shareholders are growers or ex-growers, the company has said.

Overseas institutions own about a quarter of ABB, with a similar percentage held by Australian investors, while the balance is held by retail shareholders, it said.

ABB shares ended Tuesday up 1.5 percent to A$9.40.

US$1 = AUD1.21 (June 3)