Viterra, Canada’s largest grain handler, has won support from shareholders of Australian ABB Grain for its A$1.6 billion ($1.4 billion) takeover bid. Viterra received 84 percent votes in favor of its offer at a meeting of shareholders of Australia’s largest barley exporter in Adelaide, Kenn Pearce, spokesman for ABB Grain said. The deal needed 75 percent support. The deal will allow Saskatchewan-based Viterra to add supply from the world’s second-largest barley exporter and No. 4 wheat shipper. Viterra has previously expanded through acquisitions, acquiring rival Agricore United in June 2007 for C$1.76 billion ($1.6 billion), reported Bloomberg. Viterra chief executive Mayo Schmidt said in May he expected to make more acquisitions and is willing to increase the company’s debt levels to do so. The company spent less than $100 million in the fiscal year ended Oct. 31 on seven smaller acquisitions. The combined company will have one of the strongest balance sheets in the industry, ABB Grain and Viterra said.
Canada’s Viterra Wins ABB Grain Holder Approval for Takeover
The combined company will have one of the strongest balance sheets in the industry, ABB Grain and Viterra said.
September 9, 2009