Banks-Cargill Motivation Is in Doubt

The merger of the U.K. agricultural operations of Banks Agriculture and Cargill Inc. is motivated by shrinking profit margins, analysts said, despite the firms' emphasis on a successful past partnership in their joint seed operations. U.S. agribusiness firm Cargill and U.K. grain marketer [Rich...

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Bibliographic Details
Published inWall Street journal. Europe
Main Author By Catherine Hunter, Luis Morais and Steve Higgins of
Format Newspaper Article
LanguageEnglish
Published Brussels Dow Jones & Company Inc 01.02.2001
EditionEurope
Subjects
Agriculture
Common Agricultural Policy
Profit margins
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Summary:The merger of the U.K. agricultural operations of Banks Agriculture and Cargill Inc. is motivated by shrinking profit margins, analysts said, despite the firms' emphasis on a successful past partnership in their joint seed operations. U.S. agribusiness firm Cargill and U.K. grain marketer [Richard Banks] said they will be merging their U.K. agricultural operations to focus on grain trading and farm inputs, including fertilizers, seeds, crop protection and animal-feed products. The 50-50 joint venture makes the new firm -- Banks Cargill Agriculture -- the U.K.'s second largest agricultural firm, with revenue of more than GBP 450 million (710 million euros) a year.
ISSN:0921-9986