AWB sale receives Australian foreign investment approval

by World Grain Staff
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CALGARY, ALBERTA, CANADA — Agrium Inc. announced on May 4 that Cargill has received clearance from Australia's Foreign Investment Review Board (FIRB) for Cargill’s proposed acquisition of AWB Limited’s (AWB) 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 Dec. 15, 2010, Agrium reached a definitive agreement with Cargill in 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 are pleased that all the necessary approvals have now been obtained to complete this transaction. This will allow us to focus our efforts in Australia on what we do best, bringing value to our grower customers through our retail Landmark business,” said Mike Wilson, Agrium’s president and chief executive officer. “Likewise, we believe Australian grain growers will further benefit from Cargill’s expertise in grain handling and international marketing.”
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