Alliance Grain shares up 8 pct on Cargill sales deal
WINNIPEG, Manitoba (Reuters) - Cargill Inc CARG.UL has agreed to sell animal feed proteins made from pulse crops by Canadian-based Alliance Grain Traders Inc (AGT.TO), boosting Alliance shares 8 percent on Wednesday.
The five-year deal makes Cargill the exclusive seller in North America of proteins made by Alliance subsidiary United Pulse Trading Inc for the animal feed sector, Alliance said.
Cargill is one of the world's largest privately held corporations.
"You've got a big guy marketing for you, so that will help big-time," said Robert Gibson, an analyst who follows Alliance for Octagon Capital.
Animal feed proteins are not a core product for Alliance, which exports and processes pulse crops such as lentils and peas, making it a logical area for a marketing arrangement with Cargill, Gibson said.
Alliance, based in Regina, Saskatchewan, plans this year to start processing pulse crops into human food ingredients and animal feed products at a new plant in Minot, North Dakota.
Alliance shares rose C$1.10 to C$13.90 in early trading in Toronto, touching a two-month high.
(Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by Nick Zieminski and Dan Grebler)
- Qatar adamant it will host 2022 World Cup despite doubts
- Argentina's Fernandez to meet billionaire investor Soros in New York
- New Jersey hiker killed by black bear: police
- Islamic State urges attacks on U.S., French citizens, taunts Obama
- Exclusive: Iran seeks give and take on Islamic State militants, nuclear program