09/04/2007
Cargill Limited announced today that it has entered into a definitive purchase and sale agreement with Saskatchewan Wheat Pool Inc. (TSX:SWP) for (9) high throughput elevators and one export grain terminal in Vancouver.
Company officials outlined the details of the transaction, mutually agreed to by Cargill and SWP, as follows:
1. SWP would sell Cargill a total of nine 'country assets' across the
prairies - a combination of elevator/crop input centres:
- Davidson, SK (grain handling/crop input)
- Kindersley, SK (grain handling/crop input)
- Congress, SK (grain handling/crop input)
- Vermilion, AB (grain handling)
- Camrose, AB (grain handling/crop input)
- Blackie, AB (grain handling)
- Viking, AB (grain handling)
- Equity, AB (grain handling)
- Elva, MB (grain handling/crop input)
2. SWP would sell its 100% owned terminal located on the North Shore of the port of Vancouver to Cargill; and,
3. Cargill would sell its 50% interest in the Vancouver Cascadia
Terminal to SWP (with some considerations).
Of special note, this agreement remains subject to SWP's completion of its proposed bid for Agricore United. Len Penner, President of Cargill Limited, said that the selection of these high throughput facilities ensures growers would continue to have access to local service and programs.
"Cargill has a wealth of experience in grain marketing, risk management and crop input service. 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." With respect to the Vancouver terminal opportunities,
Penner concluded that Cargill would have greater flexibility to manage its grain pipeline to Canada's valued export customers. "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," Penner confirmed. "Cargill wants to ensure that Canadian growers are able to fully capture and share in our success."
