Australian grain producer AWB’s board to recommend $1.1B bid from fertilizer producer Agrium

Summary Box: AWB board favors $1.1B Agrium bid

THE ANNOUNCEMENT: Australian grain producer AWB Ltd. has recommended that its shareholders take a buyout offer from Agrium worth nearly $1.1 billion cash, Agrium said Tuesday.

THE MOVE: Agrium, one of the largest fertilizer makers in North America, appears to have swiped the company from rival GrainCorp. Ltd., which put in an earlier bid.

THE BID: The deal is worth about $1.33 per share, or $1.50 Australian. Agrium said the per-share price is a 37 percent premium to AWB’s trading price on Aug. 13, before AWB agreed to a deal.