Agrium says that its proposed purchase of Australian grain handler and agri-retailer AWB Ltd. would be “significantly accretive” to earnings in the first year, and that it could generate A$40 million in synergies annually.
“We believe we will be able to generate synergies of A$40-million or more on an annual basis, with limited synergies realized in the first year, the majority in 2012 and the full amount obtained in 2013 and thereafter,” Agrium said in a release Aug. 24.
It said the AWB board has recommended Agrium’s proposed acquisition to shareholders. Agrium has offered to purchase all of the outstanding shares of AWB for A$1.50 per share in cash for A$1.238-billion, a 45 per cent premium over the 30-day volume weighted-average trading price for AWB shares on the ASX ended Aug. 13.
