Seeking Alpha

CHS expands further into Canada, buys 16 Agrium farm outlets

  • U.S. farm co-operative CHS agrees to buy 16 Canadian farm retail outlets from Agrium (AGU +0.6%) and says it plans to further expand its business in Canada.
  • The deal includes eight stores that sell seed, chemicals and fertilizer to farmers, as well as eight ammonia tank businesses, located in Alberta and Saskatchewan, the two biggest wheat- and canola-growing Canadian provinces.
  • Separately, AGU and fertilizer peers Potash (POT +1.1%) and Rentech Nitrogen Partners (RNF +1.4%) are upgraded to Market Perform from Underperform at Cowen on the possibility that fertilizer prices could rise; the possibility of a late start to fertilizer application, which would pressure logistics systems, may lead to even higher near-term prices, the firm says.
Comments (1)
  • Sabre3
    , contributor
    Comments (12) | Send Message
     
    I thought Agrium was expanding, not selling off outlets??? Perhaps because of the Russian cartel shenanigans?
    19 Mar 2014, 02:42 PM Reply Like
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