December 16, 2010
Cargill buys Australian grain-trading business of AWB from Agrium
Cargill Inc. agreed to purchase the Australian grain-trading business of AWB from Agrium Inc. , enhances its presence in a country forecast to be the world's fourth-largest wheat exporter this year.
Net proceeds from the sale would be about AUD870 million (US$859 million), according to Agrium. The figure is based on the buying price, the amount of working capital freed up due to the sale and AUD240 million (US$237) of debt that will be assumed by Cargill, Agrium said.
The deal needs regulatory approval and the companies said they expect completion in the first half of 2011.
Cargill, founded in the US Midwest in 1865, has been in Australia since 1967, and employs about 1,500 people in Australia and New Zealand, the company said.