Agrium could exit Landmark

17 Sep, 2015 02:54 PM
Comments
8
 
Tommy Warner
Tommy Warner

THE case is building for Canadian agribusiness giant Agrium to exit rural services business Landmark.

According to

The Australian Financial Review, well-placed sources said Agrium was considering a sale or a joint venture for a business that has failed to meet its expectations.

Agrium has made several management changes, sending in US accountant Tommy Warner two years ago to help improve the business' fortunes.

arner conceded last year that Agrium didn't really have a good pulse on Australia.

It is likely Agrium would take a haircut on any sale despite impairments and the softening dollar.

Agrium outgunned GrainCorp to swoop on AWB in 2010 in a $1.2 billion deal.

Sources suggested Agrium could look to do a joint venture with Ruralco, which tried to expand its rural services footprint two years ago with an unsuccessful $250 million bid for Elders.

It has since sold its Elders stake and moved on to a grains marketing joint venture with giant US co-operative CHS.

Market watchers have long believed the rural services sector is ripe for consolidation, arguing the market is not big enough to sustain Elders, Landmark and Ruralco.

AFR
Date: Newest first | Oldest first

READER COMMENTS

Jock Munro
17/09/2015 5:22:53 PM

Yes Agruim sold off the AWB LTD wheat marketing and handling assets to Cargill - this would be one of the lowest points in our agricultural history though nothing will surpass Rudd Labor and Nelson's Liberals abolishing the single desk.
John Hine
18/09/2015 6:33:55 AM

Two points: * who sold their shares in AWB Ltd to Agrium? Farmers??? * a time for an Aussie farm coop to buy a low-priced Landmark??
Top Ender
18/09/2015 6:36:47 AM

The alternate head line could read "Long Death of Dalgetys".
Geronimo
18/09/2015 6:51:29 AM

How on earth so many agricultural retailers are still operating I'll never know.
Bim Joyd
18/09/2015 7:05:38 AM

Yesterday's man never gives up on yesterday's methods.For God's sake (and yours) as today's kids say, "Get over it and move on"!
Jock Munro
20/09/2015 5:43:50 PM

Bim Joyd, We are moving on to poor quality wheat,lower relative value and instability and volatility. A merchants picnic.
Agronomist
24/09/2015 1:17:52 PM

As a previous employee of Landmark when Agrium took over this was always on the cards. The fact that Agrium had no idea on business in Australia was apparent almost immediately after they took over. The margins they expected were completely unrealistic as they obviously had far more of a monopoly on agrigultural supplies in the US and expected the same "walk in the park" in Australia. A number of agronomists left that business and went to opposition companies (such as myself) as we didn't spend 3 years at uni to simply become supermarket style sales' guys like you see on TV at 3am...
Pain de Campagne
24/09/2015 3:01:48 PM

Michael Chaney ( ex CEO of Wesfarmers) still can't wipe the smile of his face after AWB paid an exorbitant $800m for a few shops selling drench and selling stock. Thanks to Agrium for saving AWB shareholders bacon when they stumped up $1.2 bn for the lot once the single desk was abolished. Doubt there will be anyone else stupid enough to pay anywhere near that kind of money. Agrium will take a big haircut.

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