Cargill to buy 10 Canadian grain facilities from S.W.P.
March 29, 2007
by Ron Sterk
WINNIPEG, MAN. — Cargill Ltd. said it has entered into a definitive purchase and sale agreement with Saskatchewan Wheat Pool Inc. for one export grain terminal and nine high-throughput elevators in Canada.
The agreement includes the purchase by Cargill of nine combination grain elevator/crop input centers across the three Prairie Provinces and one export terminal located on the North Shore of the port of Vancouver. Also involved is the sale of Cargill’s 50% interest in the Vancouver Cascadia Terminal to S.W.P. with some considerations.
Three of the elevators are located in Saskatchewan, in Davidson, Kindersley and Congress, five in Alberta, in Vermilion, Camrose, Blackie, Viking and Equity, and one in Elva, Man.
Selection of the high-throughput facilities ensures growers access to local service programs, Cargill said. The agreement is subject to S.W.P.’s completion of its proposed bid for Agricore United. S.W.P.’s offer to acquire Agricore shares expires April 11.
"If this expansion of our business materializes, we look forward to serving more farmers by providing our professional grain marketing support and crop production consulting services proven in delivering customer success," said Len Penner, president of Cargill Ltd. "These assets will complement our existing commitment to being the partner of choice delivering distinctive value to fulfill our goal of helping to nourish the world," he said.
Cargill Ltd. is headquartered in Winnipeg and operates grain handling and crop input facilities across the Canadian Prairies. With more than 10,000 employees, it also has business interests in meat, egg and oilseed processing, animal feed, salt, chocolate, natural gas and grain merchandising.
S.W.P., headquartered in Regina, Sask., is a leading grain handling, marketing, processing and farm service provider in the Prairie Provinces.