May 13, 2011

Agrium Inc announced May 11 that it has successfully completed the divestiture of the majority of the commodity management businesses of AWB Ltd to Cargill Inc, with the purchase price representing the net asset value of the businesses sold plus a premium.

The aggregate proceeds from the sale of these businesses to Cargill, including the assumption of debt and the repayment of intercompany funding by Cargill, the release of working capital from AWB Harvest Finance Ltd, estimates of future adjustments and the estimated value of certain other commodities management businesses not sold to Cargill, totals approximately US$1.3 billion.

The cash received from the sale to Cargill totals US$677 million, which includes the repayment of US$363 million of working capital funding Agrium has provided to the commodities management businesses since December 15, 2010.

Over the next year, it is expected that AWB Harvest Finance Ltd will release working capital and reduce associated debt of approximately US$330 million. Under the arrangement with Cargill, AWB's investment is returned as the existing pools' business is completed.

In addition, Agrium continues to evaluate the disposition of certain other commodity management businesses that are not being sold to Cargill which are valued at over US$55 million.

The estimated net purchase price for Landmark retail operations is US$0.8 billion after adjusting for the items above.

"We are pleased to complete the sale of the majority of AWB's commodity management business to Cargill. This divestiture will allow us to focus our efforts on realising the full strengths and opportunities that the Landmark business presents for the Australian customer as well as providing potential for future growth in this important agricultural market," said Agrium's President and CEO, Mike Wilson.