THE proposed $1.6 billion takeover of ABB Grain by Canada's biggest wheat exporter Viterra has met criticism over the future of port access and monitorings, despite ABB managing director Michael Iwaniw insisting it would be business as usual.
"All the things that ABB does, this new company will do as well," he told Stock Journal on Monday. "While ABB has a significant banking facility, the new company will be potentially more active in purchasing grower grain because of the strength of its balance sheet, not just in South Australia but across the states."
Mr Iwaniw said South Australian Farmers' Federation's concerns about port access and monitoring were unfounded because Australia had a heavily audited shipping scheme conducted by Wheat Exports Australia.
Under the new company structure, SA is set to become the headquarters for Australia, New Zealand and South East Asia, the base for ABB's malting company Joe White Maltings and the "centre for barley excellence".
Lameroo cropper and former AusBulk chairman Kevin O'Driscoll said the merger drew similarities to the ABB takeover of AusBulk and United Grower Holdings (a grower-owned investment holding company) in 2004. "Growers lost control back then because UGH disappeared," he said. "If growers really want to give themselves power in any negotiations, they need to have some money (shares) in the game. The only money they had back then was UGH and a lot of them cashed that in."
* Extract from a full two-page report in Stock Journal, May 28 issue.
Email a friend