Agricultural retailer Agrium is being
cited as a potential player in the
Viterra takeover, with analysts calling
the Calgary-based company a logical fit
for any deal.
"Agrium would love to have Viterra's
agri-business," PI Financial analyst
Jason Zandberg said.
Agrium's Richard Downey said Tuesday the
company is "declining to comment on
speculation or rumours."
Viterra, whose executives are based in
Calgary, said last week it had received
expressions of interest from third
parties, opening the door to unnamed
sources expressing the interest of
various companies.
Reports have named Swiss Glen-core as a
bidder, as well as Cargill. Other
industry players have also been tossed
in the mix, but no one has confirmed
they are interested in making an offer.
Agrium, which owns agricultural retail
outlets and produces fertilizer, would
have an interest in Vi-terra's 261
retail stores in Western Canada, Joel
Jackson of BMO Capital Markets wrote in
a report. Agrium has 75 retail stores in
the Prairies, and both companies have
outlets in Australia.
"We expect (Agrium) to be a potential
suitor for Viterra's agri-products
division, as the acquisition is a match
on many levels" for Agrium, he wrote,
adding that should Agrium enter the
race, it would be unlikely to want the
grain-handling portion of Viterra's
business.
"So (Agrium) would either bid just for
the agri-products piece or sell off the
grain-handling business, similar to what
transpired after its acquisition of the
AWB."
When Agrium bought the former Australian
Wheat Board in 2010, it retained the
retail arm and sold grain-handling to
Cargill.
Zandberg said that lends credence to an
Agrium-Cargill deal.
"They teamed up together in Australia to
do a similar sort of deal," he said.
However, Agrium could also give a
foreign company interested in Viterra a
Canadian component, Zandberg added.
Viterra's size - a sale price has been
pegged around $5.5 billion - means the
federal government must review a foreign
takeover to determine if there's a "net
benefit" to the country, and any deal
would be scrutinized by the Competition
Bureau.
In 2010, the government blocked BHP
Billiton's bid to buy Potash Corp. of
Saskatchewan.
Read more:
http://www.calgaryherald.com/business/ch
anges expected agricultural retail secto
r/6298554/story.html#ixzz1p64C6Sbe
cited as a potential player in the
Viterra takeover, with analysts calling
the Calgary-based company a logical fit
for any deal.
"Agrium would love to have Viterra's
agri-business," PI Financial analyst
Jason Zandberg said.
Agrium's Richard Downey said Tuesday the
company is "declining to comment on
speculation or rumours."
Viterra, whose executives are based in
Calgary, said last week it had received
expressions of interest from third
parties, opening the door to unnamed
sources expressing the interest of
various companies.
Reports have named Swiss Glen-core as a
bidder, as well as Cargill. Other
industry players have also been tossed
in the mix, but no one has confirmed
they are interested in making an offer.
Agrium, which owns agricultural retail
outlets and produces fertilizer, would
have an interest in Vi-terra's 261
retail stores in Western Canada, Joel
Jackson of BMO Capital Markets wrote in
a report. Agrium has 75 retail stores in
the Prairies, and both companies have
outlets in Australia.
"We expect (Agrium) to be a potential
suitor for Viterra's agri-products
division, as the acquisition is a match
on many levels" for Agrium, he wrote,
adding that should Agrium enter the
race, it would be unlikely to want the
grain-handling portion of Viterra's
business.
"So (Agrium) would either bid just for
the agri-products piece or sell off the
grain-handling business, similar to what
transpired after its acquisition of the
AWB."
When Agrium bought the former Australian
Wheat Board in 2010, it retained the
retail arm and sold grain-handling to
Cargill.
Zandberg said that lends credence to an
Agrium-Cargill deal.
"They teamed up together in Australia to
do a similar sort of deal," he said.
However, Agrium could also give a
foreign company interested in Viterra a
Canadian component, Zandberg added.
Viterra's size - a sale price has been
pegged around $5.5 billion - means the
federal government must review a foreign
takeover to determine if there's a "net
benefit" to the country, and any deal
would be scrutinized by the Competition
Bureau.
In 2010, the government blocked BHP
Billiton's bid to buy Potash Corp. of
Saskatchewan.
Read more:
http://www.calgaryherald.com/business/ch
anges expected agricultural retail secto
r/6298554/story.html#ixzz1p64C6Sbe
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