The Canadian fertilizer maker and farm products retailer did not provide a final sale price for the business, but indicated that the net proceeds from the deal could be around A$870 million ($869.1 million).
Agrium said on Wednesday the purchase price is payable in cash and Cargill will assume responsibility for any debt owed by the commodity management business. The deal is expected to close in the first half of 2011.
Calgary, Alberta-based Agrium said the purchase price to be paid by Cargill will be equivalent to the net asset value of the acquired business as of the closing date of the deal, plus a premium.
Agrium, the largest North American farm products retailer, acquired AWB a few months ago with an eye on the Australian company's prized Landmark farm retail outlets.
In September, the company said it was mulling whether to keep or sell the handling, storage and marketing arm of AWB that it also acquired as part of the deal.
MORE TO COME
Agrium said it is continuing to evaluate the disposition of certain other businesses that form part of the commodity management business that is not being acquired by Cargill.
Agrium believes these additional assets are worth about A$55 million. In all, Agrium said it expects to raise about A$925 million from the sale of the commodity management businesses -- about A$240 million of this would be debt assumed by Cargill. Read More ca.reuters.com ... For the latest updates PRESS CTR + D or visit Stock Market news Today
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