In the past, potential suitors for AWB have been scared off by possible liabilities relating to the Iraqi oil-for-food scandal, but now that AWB has only one pending lawsuit in the United States, it appears rivals have less to be concerned about, and there is a feeling they could be starting to run the ruler over the business once again.
According to The Australian Financial Review, AWB is being advised by Deutsche Bank and has been in talks with US group Gavilon for months about selling its Geneva trading business and a majority stake in its Australian Commodities Management division.
The sale of those operations would leave AWB with its Landmark rural services business as its core operation, which could actually assist in clearing the way for a takeover of the group.
Viterra, the Canadian grain giant that bought ABB Grain last year, has been viewed as a potential buyer of Landmark or of rival rural services business Elders. Viterra has made no secret that in the longer term, it plans to further consolidate in this market. Viterra's business model in Canada specifically incorporates a rural services division, which ABB does not provide, and Elders or AWB is considered the next step locally.
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