Agrium Gets Final Regulatory Approval To Close Viterra Asset Purchase

(RTTNews) - Canadian fertilizer and agricultural products distributor Agrium, Inc. (AGU, AGU.TO) said Thursday that it has received the final regulatory approval to acquire the retail agri-products business of Canada's biggest grain handler Viterra, Inc. (VT.TO, VTA.AX) from Swiss commodities trader and miner Glencore Xstrata Plc (GLEN.L, GLNCY, GLCNF).

The Canadian Competition Bureau has cleared Agrium's acquisition of the Canadian retail assets of Viterra after it resolved competition concerns under a consent agreement. Mergers in Canada are subject to review by the Bureau under the Competition Act to ensure that they will not result in a substantial lessening and/or prevention of competition.

"I commend the merging parties for their cooperation throughout the merger review and for reaching this agreement that will preserve competition in the retail supply of anhydrous ammonia and urea in Alberta and Saskatchewan," said John Pecman, Commissioner of Competition.

As part of the consent agreement, Agrium has agreed to divest seven retail stores and nine anhydrous ammonia businesses, while also agreeing to supply anhydrous ammonia to any purchaser of the divested assets for up to four years at prices not to exceed those charged to its retail outlets in Alberta and Saskatchewan.

Agrium had in June acquired 13 retail location of Viterra in Australia, while the proposed acquisition of another about 210 retail stores across Western Canada was under review by regulators in Canada.

The deal went under review after the regulator concluded that the deal will likely lead to a substantially lower or prevent competition in the retail supply of anhydrous ammonia and urea to farmers in certain areas of Alberta and Saskatchewan.

"We are very pleased to have completed this important step in this highly attractive acquisition. We look forward to finalizing the completion of the sale with Glencore (and Viterra) over the coming weeks", Agrium President and CEO Mike Wilson said in a statement.

Glencore agreed in March 2012 to acquire Viterra for C$16.25 per share in an all-cash deal that valued Viterra at about C$6.1 billion. In a parallel deal, Agrium also agreed on the same day to buy the majority of Viterra's retail agri-products business including its 34 percent interest in Canadian Fertilizer Ltd. for C$1.8 billion in cash.

AGU closed Thursday's regular trading session at $84.71, down $0.17 or 0.20% on a volume of 0.62 million shares, and AGU.TO closed on the TSX at C$88.85, down C$0.26 or 0.29% on a volume of 0.45 million shares.