2225 GMT - Elders is paying a full price to acquire Delta Agribusiness, says Wilsons, but there's lots to like about the deal. Elders has agreed to buy Delta for A$475 million, and will part-fund the transaction via a A$246 million entitlement offer. "We like the alignment in core product offering (ie. Retail Products), broadly complementary geographic footprints (ie. gives Elders more exposure to New South Wales and Western Australia) and opportunity for margin expansion through own brand penetration," analyst James Ferrier says. Still, there is a risk that Australia's competition regulator will get involved. Also, the purchase price looks full when compared to Nutrien's acquisition of Ruralco in 2019, Wilsons says. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
November 18, 2024 17:25 ET (22:25 GMT)
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