News: FIRB grants Agrium approval for AWB takeove

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AWB Ltd (ASX:AWB) has announced that its takeover suitor, Canadian agribusiness Agrium, has received foreign investment approval.

The grains marketer says the Australian Foreign Investment Review Board has given the green light to Agrium's planned takeover of AWB.

The proposed scheme of arrangement is priced at $1.50 per share, valuing AWB at $1.2 billion.

As a result of the Australian foreign investment approval being granted, AWB says both companies will continue to pursue the required regulatory, shareholder and court approvals.

In May, AWB said its half year result was impacted by the settlement of the Watson shareholder class action for $39.5 million, and the loss on sale and restructuring costs with the sale of Landmark Financial Services loan and deposit books of $65.4 million.

AWB has forecast a stronger second half in rural services following good autumn rains, increased activity and operational improvements.

AWB posted a net loss of $63.52 million in the six months to 31 March 2010.