Elders Limited has officially settled its $475 million acquisition of Delta Agribusiness. Elders, a pastoral group providing a range of services and products to the agricultural industry, expects the acquisition to generate meaningful value for its shareholders over time. Delta Agribusiness operates a network of rural services centres, providing agronomic advice, livestock services, and merchandise sales to farmers.
The Australian Competition and Consumer Commission (ACCC) granted approval for the transaction on October 9, following the requirement that Elders divest six Delta Agribusiness outlets located in Western Australia. This divestment addressed concerns about potential anti-competitive effects in specific regional markets.
As part of the finalisation of the acquisition, Elders paid $292 million in cash to Delta Agribusiness shareholders. In addition to the cash payment, Elders issued 22.3 million shares. The acquisition, initially announced nearly a year ago, marks a significant expansion of Elders’ presence in the agribusiness sector.
Elders’ chief executive officer, Mark Allison, stated that the company has a strong track record of extracting synergies from acquisitions. He anticipates that the integration of Delta Agribusiness will enhance Elders’ service offerings and strengthen its position in key agricultural regions.
