Agrium (NYSE:AGU) is very close to closing the deal for AWB Limited (ASX:AWB), after being cleared by the Foreign Investment Review Board (FIRB) to go ahead with the deal.
The Board said they see the deal as being beneficial to all parties involved.
Analysts commenting on the merger concur, saying the markets of AWB in Asia, and Agrium's in North and South America will benefit the two companies.
Terms are Agrium will acquire shares in AWB at A$1.50 each, coming to $1.2 billion total.
Showing posts with label AWB. Show all posts
Showing posts with label AWB. Show all posts
Wednesday, October 6, 2010
Monday, August 30, 2010
Canaccord Genuity Maintains 'Buy' Rating on Agrium (NYSE:AGU)
Canaccord Genuity said it's maintaining its "Buy' rating on Agrium Inc. (NYSE:AGU), while raising it price target on the fertilizer company from $80 to $85.
"We continue to recommend Agrium due to the near-term upside related to the upcoming fall application season in the US, the increasingly positive fundamentals in the nitrogen sector, and the potential expansion in margins from AWB," said the Canaccord analyst.
AWB is the top fertilizer exporter in Australia, and is second in their domestic market.
Agrium has recently expressed interest in acquiring assets of Potash (NYSE:POT) if they're offered for sale if BHP Billiton (NYSE:BHP) takes them over.
"We continue to recommend Agrium due to the near-term upside related to the upcoming fall application season in the US, the increasingly positive fundamentals in the nitrogen sector, and the potential expansion in margins from AWB," said the Canaccord analyst.
AWB is the top fertilizer exporter in Australia, and is second in their domestic market.
Agrium has recently expressed interest in acquiring assets of Potash (NYSE:POT) if they're offered for sale if BHP Billiton (NYSE:BHP) takes them over.
Monday, August 16, 2010
Agrium (NYSE:AGU) Falls on AWB Acquisition News
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.
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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