2128 GMT - Rural services provider Elders's A$475 million acquisition of Delta Agribusiness looks sound to Citi. It thinks a target of A$12 million annual Ebitda savings from the transaction could prove conservative, given Elders's strong track record in integrating businesses. Analyst William Park says Elders's EPS could be boosted by 15% once those savings are accounted for. "With Delta's earnings likely to be 2H skewed (i.e. Delta Ebit A$43 million in FY24), we see potential further upside to A$170 million Ebit forecast for FY 2025," Citi says. The risk of the transaction being blocked is unlikely given Elders's market share, it adds. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
November 18, 2024 16:28 ET (21:28 GMT)
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