Graincorp Deal May Stir Taste for CBH

Graincorp Deal May Stir Taste for CBH

Date Published: 1st November 2012

By Caroline Henshaw, Published in The Wall Street Journal. Read the full story here.

Archer Daniel Midland Co's appetite for Australian grain handler Graincorp Ltd may prompt potential foreign investors in the nation's lucrative agriculture sector to look for an even tastier deal out West, analysts say.

Corporate Agriculture Australia's managing director, Gordon Verrall, believes the Graincorp deal-which some commentators have predicted could be worth more than 3 billion Australian dollars (US$3.1 billion)-may prompt Western Australia's wheat farmers to consider a sale of their local grain-handling cooperative, CBH Group.

CBH, Australia's largest wheat, barley and canola exporter with assets of more than A$1.5 billion, may be worth up to 2.5 times as much as its eastern peer because of its substantial international storage, infrastructure and processing network, he estimated.

That would equate to A$6.75 billion, under the terms of ... read more

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