Canada’s Agrium Inc announced on 6 July that it is buying Cargill’s US ag-retail business, with annual revenues of over US$150M.
Agrium is North America’s largest retail seller of crop inputs such as seed, fertiliser and pesticides, according to Reuters.
The acquisition will include 18 ag-retail outlets across the northern US corn-belt region, in the states of Nebraska, South Dakota, Minnesota, Wisconsin, Michigan and Indiana.
“The locations are in regions where we currently have a limited presence,” said Agrium CEO Chuck Magro said.
The sale does not involve Cargill’s Canadian crop input retail business.
Roger Watchorn, group leader of Cargill’s North American agricultural supply chain, said the company would “focus on being the world’s leading merchant of grain and oilseeds”.
The global agribusiness corporation had been refocusing its operations by exiting some lower-margin businesses and expanding into higher-margin areas such as food ingredients and aquaculture, Reuters said. In February, it announced it would stop providing crop inputs to farmers in Central and Eastern Europe (see News, OFI, March/April 2016).
The acquisition to is expected to close by the end of this year’s third quarter.