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Oct. 26, 2011 Vancouver Sun reports: Viterra Inc., Canada's largest grain handler, said it's looking for acquisitions in North America and will benefit from the government's plan to dismantle the Canadian Wheat Board's monopoly. Viterra will consider opportunities "in grain handling, processing and agri products such as fertilizer and retail agri products," Mayo Schmidt, chief executive officer, said Oct. 21 in a telephone interview from Calgary. The company, which is based in Regina, Saskatchewan, is looking to increase its U.S. business, Schmidt said. Viterra already manufactures spaghetti, mills animal feed and processes lentils and specialty crops in the U.S. There's potential to expand its processing capacity in the country, said Robert Winslow, a Toronto-based analyst at National Bank Financial Inc. "They've talked about doing more up the value chain in the States," Winslow, who rates Viterra "underperform," said Oct. 21 in a telephone interview. "They may even expand into other specialty crops like rice." Canada's Prime Minister Stephen Harper introduced legislation last week that gives the Winnipeg, Manitoba-based Wheat Board four years to develop a plan to become a private company or a cooperative. The Wheat Board currently has a monopoly on marketing western Canadian wheat and barley. Farmers in the region, some of whom oppose the dismantling of the monopoly, have been obligated to sell all their grain for human consumption to the Wheat Board for almost 70 years. New Market System "In the new market system that will be the reality for Canadian farmers, companies such as Viterra and our competitors will realize much greater efficiencies and logistical opportunities," Schmidt said. Viterra rose 1 per cent to $10.60 at 10:35 a.m. Toronto time. The shares have increased 13 percent this year. Viterra was known as Saskatchewan Wheat Pool Inc. until 2007 when it changed its name following the acquisition of Agricore United, a rival Canadian grain handler. The company has completed five acquisitions in the past three years, including its September 2009 takeover of Australia's ABB Grain Ltd. for A$1.92 billion ($1.99 billion), according to Bloomberg data. Tweet |
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