Cargill’s merger with Agribrands International (NYSE: AGX) cleared a hurdle when the waiting period mandated by the Hart-Scott-Rodino Antitrust Improvements Act (HSR) expired.
HSR requires the parties to mergers or acquisitions of a certain magnitude to file documents with the Federal Trade Commission (FTC) and the Department of Justice (DOJ) and to wait 30 days before consummating such transactions, giving authorities time to determine whether filing additional information is warranted. The HSR waiting period expired at 11:59 p.m. Saturday, Jan. 20, with no requests from the FTC or the DOJ for more information.
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While other regulatory hurdles are still pending, the parties hope to secure the necessary authorizations as well as approval from Agribrands’ shareholders in order to close the transaction in April.
Under terms previously announced, Cargill will acquire all outstanding shares of Agribrands for $54.50 per share in cash, for an equity value of about $580 million. Agribrands will be merged with Cargill Animal Nutrition to create a world-class animal nutrition company with 178 plants in 26 countries and 9,500 employees worldwide.
Cargill is an international marketer, processor and distributor of agricultural, food, financial and industrial products and services, with 85,000 employees in 60 countries. The company provides distinctive customer solutions in supply chain management, food applications and health and nutrition.
Agribrands is a leading international producer and marketer of a broad line of animal feeds and other agricultural and nutrition products. It operates 70 manufacturing plants in 17 countries. Information and financial reports about Agribrands are filed with the Securities and Exchange Commission and are available free at the website maintained by the SEC, www.sec.gov .
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