ABB's managing director Michael Iwaniw and AWB's managing director Gordon Davis have openly said that they would be keen to pursue the idea.

With both companies posting significant profits this year – ABB announced a full-year net profit of $48.8 million on Tuesday and AWB posted a $64.3m profit last week – it would create a company with the lion's share of market capitalisation in the Australian grain market.

And with the first year of a completely deregulated grain market causing angst for a number of growers, there is probably an attraction for many in dealing with a company that combines Australia's previous single desk marketers for wheat and barley.

Mr Iwaniw said any merger or acquisition would have to benefit shareholders.

* Extract from a report in Stock Journal, SA, November 27 issue.