Saskatchewan-based Viterra Inc. has acquired Australia’s ABB Grain Ltd. for $1.4-billion in cash and stock.
The deal will create one of the largest wheat, canola and barley exporters in the world, and will substantially expand Viterra’s global reach.
“We are creating a leading global food ingredients supplier at a time when markets are expanding,” says Viterra CEO Mayo Schmidt. “With assets in the key exporting geographies of Australia and Canada, the new company will have enhanced access to high-growth markets and margin opportunities.”
According to Schmidt, the relationship between the two companies “will drive significant value” for shareholders, customers and growers. “We believe strongly with all the opportunities…that the culmination of these two companies is going to generate certainly some strategic and terrific opportunities.”
While Viterra will own 100-per-cent of ABB Grain, the Australian company will continue to exist in some form. The deal should close sometime this summer.