U.S. farm co-op CHS plans to buy Western Canada farm supplier
WINNIPEG, Manitoba (Reuters) - CHS Inc (CHSCP.O), the largest U.S. farm co-operative, said on Thursday that it plans to acquire farm retail supplier DynAgra Corp, continuing its steady move into the newly opened Western Canada grain market.
Minnesota-based CHS expects to complete its acquisition of DynAgra late this month. It will operate under the name CHS DynAgra.
DynAgra has four sales offices in the Canadian province of Alberta, where it sells fertilizer, chemicals and seed to farmers.
Western Canada's move to an open wheat and barley market as of August 1, which ended the Canadian Wheat Board's long marketing monopoly, has stoked interest in the region from new players.
CHS opened a small grain marketing office in Winnipeg, Manitoba last year and began buying durum wheat to take advantage of the end of the monopoly.
Western Canada's farm retail supply industry is dominated by Viterra Inc VT.TO, and other key players include Richardson International Limited, Cargill Ltd CARGIL.UL, Agrium Inc (AGU.TO) (AGU.N) and many independent dealers.
Agrium plans to buy most of Viterra's farm retail outlets by early 2013 following a takeover of Viterra by Swiss-based Glencore International PLC (GLEN.L), pending regulatory approvals.
(Reporting by Rod Nickel in Winnipeg, Manitoba;Editing by Sofina Mirza-Reid)