Aus clears Cargill's offer to buy AWB's commodities biz

Agri business major Cargill today said that it has received clearance from the Australian government to buy AWB's commodity business from the Canadian firm Agrium Inc.

"Cargill has been informed by the Foreign Investment Review Board (FIRB) that the Australian Federal Government has no objections to the proposed acquisition from Agrium of the AWB's commodity management business," Cargill said in a statement.

The clearance follows the Australian Competition and Consumer Commission's (ACCC) approval of the acquisition on March 17, 2011 not to oppose the acquisition, it said.

A sales agreement was made in December 2010 to buy the grain commodities business of AWB from fertiliser maker and farm products retailer Agrium, the statement added.

Agrium has sold only the AWB's commodity management business to Cargill.

The acquisition will include AWB's grain marketing and pool operations, international grain trading businesses, grain distribution, storage assets as well as other international operations, it added.

"We made the decision to increase our presence in the Australian grain business to help meet the growing demand for food in Asia and around the world," Cargill Australia Managing Director Ralph Selwood said.

Cargill is an international producer and marketer of food, agricultural, financial and industrial products and services.

The company's operations in India include handling, processing and production of refined oils, grain and oilseeds, sugar, cotton, animal feed as well as food and beverage flavors among other agri-commodities.