Viterra withdraws acquisition plans for South Australian grain flow sites, mobile ship loader from Cargill

AUSTRALIA – Viterra has announced it will no longer proceed with its planned acquisition of South Australian GrainFlow handling and storage sites, as well as a mobile ship loader, from Cargill.

Both companies have formally withdrawn their joint application from the Australian Competition and Consumer Commission (ACCC), signaling an end to the proposed deal.

Initially revealed in September, the agreement aimed to see Viterra acquire five Cargill GrainFlow sites located in Maitland, Crystal Brook, Mallala, Pinnaroo, and Dimboola. The transaction also included a mobile ship loader situated at Port Adelaide, a strategic asset for South Australia’s grain export operations.

In a statement, Viterra reiterated its commitment to fostering competition and supporting growers in South Australia (SA) and western Victoria by improving access to export markets.

 “Viterra remains focused on increasing competition for SA and western Victorian growers by attracting buyers to purchase more local grain,” the company said. “We are continuing to look at opportunities to enhance the SA supply chain through improving efficiencies and enhancing service levels for customers.”

Despite the halted acquisition, Viterra emphasized that Cargill remains a significant player in the state’s grain export market. The company noted that Cargill will continue to purchase grain through Viterra’s extensive network and plans to increase export volumes.

“Cargill will continue to be a major exporter purchasing grain through the Viterra network and remains committed to increasing their volumes as a key exporter from the state,” the statement read.

Viterra also highlighted the growing competition within its network, citing a substantial increase in exporters purchasing grain over the past five years.

 “Growers have benefited from a doubling in the number of exporters purchasing within our network,” Viterra said, underscoring the importance of efficient and competitive supply chains.

The South Australian grain supply chain operates in an increasingly competitive global market. Viterra pointed to rivals in regions such as the Black Sea, Canada, the United States, and South America, all of which continue to invest in improving their supply chain infrastructure and efficiencies.

“Buyers choose supply chains that are efficient, flexible, and have strong quality management, high-performing assets, and competitively priced services,” Viterra noted. “The SA grain supply chain must compete with interstate and international origins that are constantly improving.”

While the deal’s withdrawal marks a shift in plans, it does not change the ongoing efforts to enhance South Australia’s grain export sector.

Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.