Calgary, Alberta, Canada
August 19, 2010
ALL AMOUNTS ARE STATED IN AUD (A$)
Agrium Inc. (TSX and NYSE: AGU) (“Agrium”) announced today that it has entered into a definitive agreement (the "Agrium Agreement") with AWB Limited (“AWB”) to acquire all the shares of AWB at a price of A$1.50 per share.
“The combination of Agrium and AWB provides significant strategic and financial benefits to a wide array of stakeholders. We are particularly excited about the future of working with AWB employees to reinvest in the business and bring a greater choice of products and services to AWB’s grower customer base,” stated Agrium President and CEO Mike Wilson.
AWB has advised Agrium that its Board considers the Agrium proposal superior to the proposed merger with GrainCorp Limited. Under AWB’s existing agreement with GrainCorp, AWB is required to provide three clear days notice to GrainCorp before changing or withdrawing their recommendation. The waiting period expires Monday (Calgary time) and Agrium anticipates that AWB will recommend the Agrium transaction at that time.
The Agrium transaction is currently envisaged to be executed via a Scheme of Arrangement and is subject to the conditions precedent typically included in transactions of this type.
AWB currently has 817,304,356 shares and 7,043,858 performance rights issued which the Agrium Agreement is based upon, resulting in a purchase price of A$1.237-billion.
AWB is a company listed on the Australian Securities Exchange (ASX) which is available at the ASX website www.asx.com.
About Agrium
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.
About AWB
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.
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