Graincorp has announced this Monday that it is selling its Australian bulk liquid terminals business to ANZ Terminals for $350 million. The move is part of the company’s ongoing portfolio review.
Graincorp will enter into a long-term storage agreement with ANZ Terminals following the divestment of the eight sites, which store and handle bulk liquid fats and oils, fuels and chemicals.
Managing director and chief executive Mark Palmquist said they are increasingly serving other sectors in addition to the edible oils commodities GrainCorp considers as part of its core business.
“Divesting the assets to another experienced operator, while also putting in place a long-term storage agreement, allows us ongoing and secure access to the storage needed to support our oils business, whilst releasing capital and unlocking significant value for our shareholders,” Mr Palmquist said in a statement.
The grains marketer said it is also looking at its options for its New Zealand bulk liquid terminals, which it noted are more fully integrated into its overall business.
Graincorp expects the deal to close by May 10, subject to competition watchdog and Foreign Investment Review Board approvals.
“ANZ Terminals is an established and respected bulk liquid terminals operator, Sam Tainsh, group general manager, Graincorp Oils said.
“We will work with ANZ Terminals to ensure a smooth transition for our customers and our people and through the long-term storage agreement we will have the access required for our trading and liquid feeds businesses.”
