South Australia farmers want ABB grain's port monopoly broken

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Publish time: 29th April, 2009      Source: www.cnchemicals.com
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April 29, 2009
   

   

South Australia farmers want ABB grain''s port monopoly broken

   

   

   

Whatever happens with a proposed takeover of ABB Grain Ltd. the South Australian Farmers'' Federation grains industry committee Wednesday said it wants an end to the company''s monopoly control of the state''s grain ports.

   

   

"For real competition that can lead to efficiencies in the supply chain, with the efficiencies gained being returned to growers, this monopoly control must be removed," Michael Schaefer, Chair of SAFF Grains, said in a statement.

   

   

"It will then not matter as much who owns ABB Grain."

   

   

He was commenting after South Australian-based logistics and marketing group ABB Grain Tuesday said it has received a conditional non-binding proposal from Canadian agribusiness Viterra Inc. (VT.T) to buy all of its shares for a mix of cash, Viterra shares and franked dividends within a range of A$9.00-A$9.50 a share, valuing the company at up to A$1.64 billion.

   

   

The companies are in talks but there is no assurance a binding agreement will be reached "or that a transaction will take place at all or within the reported range," ABB Grain said Tuesday.

   

   

Schaefer said SAFF Grains is assessing what the attempt by Viterrato take over ABB Grain would mean and whether it will be beneficial for growers and the grains industry in South Australia.

   

   

SAFF Grain has no direct power to prevent the takeover, but it potentially could muster some support from its members - many of whom are also ABB Grain shareholders - to affect the outcome of the bid or force a variation in bid terms.