AWB in talks for partnership in Australian operations

AWB is negotiating a new partner for its Australian operations and for the sale of AWB Geneva.

AWB said its trade in crops such as sorghum and barley has increased significantly since deregulation of the wheat market, and a partner could bring expertise in non-wheat grains.

A partner could also be beneficial with the Australian industry expected to see more consolidation, said AWB managing director Gordon Davis.

Davis did not name the company involved in the talks, but said they will be working over the coming months to close the transaction.

Davis said the sale of AWB Geneva was not performance-related as the company continues its plan of winding back overseas operations.

He said the company realised that it is not realistic for mid-sized AWB to continue growing that business at the rate which it deserves.