Canadian fertiliser maker Agrium Inc moved closer to securing its $1.07 billion take-over of Australia's AWB Ltd after the nation's largest wheat exporter formally backed the offer. AWB dropped an earlier recommendation to support a lower bid by domestic rival GrainCorp and instead backed Agrium's A$1.50 cash offer, confirming an earlier Reuters report.
The move came as other players start circling Agrium to try and pick of some of AWB's operations, including its Australian commodities business, which the Canadian firm could seek to offload once a take-over is finalised. The battle for AWB marks the latest round of consolidation in the grain industry of the world's fourth-largest wheat exporter. It also comes as BHP Billiton's hostile bid for Potash Corp underscores keen interest in the sector as demand for food grows.
GrainCorp remained interested in some AWB operations and approached Agrium over the weekend to try and broker a deal.