Shares in Agrium (TSE:AGU) (NYSE:AGU) after the market digested the news they are going to acquire Australia’s AWB.
The price offered by Agrium for the company is $1.1 billion, a 57 percent premium over the closing share price of the company on July 29.
AWB is the top agricultural company in Australia, and could be compared to Cargill in North America.
Seeking growth primarily through acquisition, Agrium lost in its bid to acquire CF Industries (NYSE:CF) earlier in 2010, and with few top quality companies to choose from, has chosen to pursue AWB in hopes of not falling too far behind in scale to some of its competitors.
Agrium dropped in price in response to the news, hitting $66.50, a loss of $0.77, or 1.14 percent, at 12:59 PM EDT.
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