AWB, ABB Merger Not Completely Dead And Buried

Although AWB and ABB Grain have called off merger discussions, farming groups are not so sure it is the end of the issue.

Industry speculation is that there was a failure to agree on the valuation split of the companies, with ABB currently having a marginally larger market capitalisation than its historically larger suitor in AWB.

Although the merger is off the cards for now, speculation is that is only the first cut and thrust in more protracted negotiations.

Some within the trade are not sure that consolidation within the grains industry needs to be done in the near term.

One source, who declined to be named, suggested that a deregulated grains industry was too immature to warrant immediate mergers.

More time is required to analyse the nature of the new industry, he said.