News last update:6 Aug 2012

Cargill to buy GrainCorp's share in grain buying unit

Cargill will buy Australian GrainCorp's holding in Australian Grain Accumulation Services (AGA) for an undisclosed amount, GrainCorp said on Friday.

GrainCorp will form a new grain buying team, while AGA will continue as a unit of Cargill Australia.

The decision by GrainCorp to voluntarily exit the joint venture was driven by the changing nature of the domestic and export grain market following the removal of the bulk wheat export monopoly in July 2008.

AGA was established in 2003 to buy grain and oilseeds for the flour milling, oilseed processing and trading activities of GrainCorp and Cargill. The two companies will maintain their milling joint venture, Allied Mills.

[Source: Reuters]

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