Agrium says that Australian grain producer AWB is recommending that its shareholders take its offer of nearly $1.1 billion cash.
Agrium, one of the largest fertilizer makers in North America, appeared Tuesday to have swiped the company from rival GrainCorp. Ltd., which put in an earlier bid.
The deal is worth about $1.33 per share. Agrium says the per-share price is a 37 percent premium to AWB's trading price on Aug. 13, before AWB agreed to a deal.
Agrium, which is based in Calgary, says it expects the deal to be accretive in the first year and yield savings of $35.4 million or more per year by 2013.
Shareholders are expected to approve the deal in November.
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