GrainCorp buys AWB in all-share deal
Creates wheat giant to rival competition
GrainCorp of Australia has a $770 million, all-share deal to buy its smaller rival AWB. According to a Reuters report, the purchase would create a group in Australia with A$2 billion plus market capitalization and revenues of A$7 billion making it the top exporter for the globe’s fourth-biggest wheat exporting country.
The GrainCorp deal offered shareholders more value, AWB management said. The deal usurped the hopes of U.S. commodities firm Gavilon Group, who had long tried to get a 50-50 grain trading joint venture with AWB.