Calgary, Alberta, Canada
December 2, 2010

Agrium Inc. (TSX and NYSE: AGU) announced today that it has successfully completed its acquisition of AWB Limited (“AWB”) at a price of A$1.50 per share in cash (purchase price of A$1.238-billion) as agreed to in the Scheme of Arrangement, including the A$0.15 per share franked dividend paid on November 30, 2010.

“We are excited about the opportunity to merge AWB’s strong market presence and extensive experience with Agrium’s international crop input sourcing capabilities, with a view to further
enhancing product and service offerings to Australian and New Zealand customers,” said Mike Wilson, Agrium CEO and President. “I would like to thank the management team of AWB for all their efforts to make this a seamless process and to extend a warm welcome to all AWB employees,” continued Mr. Wilson.

The Landmark business is the largest agricultural retailer in Australia, with over 200 company operated retail locations, over 140 additional retail franchise and wholesale customer locations in Australia and investments in various related joint venture companies. With regard to the Commodity Management operations, Agrium has not had direct participation in the grain handling and trading business to date. We continue to evaluate our options with respect to this business and we expect to provide clarity on this in the near future. Agrium expects the acquisition of AWB to be accretive in 2011.

Agrium Inc. is a major retail supplier of agricultural products and services in both North and South America and a leading global producer and marketer of agricultural nutrients and industrial products. Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and potash as well as controlled release fertilizers and micronutrients. Agrium’s strategy is to grow through incremental expansion of its existing operations and acquisitions as well as the development, commercialization and marketing of new products and international opportunities.

AWB was formed in 1939 as the Australian Wheat Board and was Australia’s statutory grain marketing authority for over 60 years. Operations are conducted through two main divisions:
Landmark and Commodity Management. Landmark Rural Services is Australia’s largest distributor of merchandise and fertilizer, with over 400 locations across Australia and New Zealand providing a diverse range of rural services including rural merchandise, crop chemicals, fertilizer, livestock, wool marketing, agronomy services and real estate agency services. The division includes 50 percent ownership interests in Hi-Fert, a wholesale fertilizer distribution company currently held for sale, Australian Wool Handlers and RD1, a New Zealand farm supply company. Following the sale of Landmark Financial Services’ loan and deposit books announced in December 2009, Landmark Rural Services also includes the remainder of the finance businesses (including insurance, wealth management, and equipment finance).
AWB’s Commodity Management business activities include grain merchandising, pool management services, storage and handling, and trade finance. Grain marketing, pool management and logistics in Australia fall under Australian Commodity Management, while activities conducted internationally through AWB Geneva and AWB India fall under International Commodity Management.

Website: http://www.agrium.com

Published: December 2, 2010