THE case is building for Canadian agribusiness giant Agrium to exit rural services business Landmark.
According to
The Australian Financial Review, well-placed sources said Agrium was considering a sale or a joint venture for a business that has failed to meet its expectations.
Agrium has made several management changes, sending in US accountant Tommy Warner two years ago to help improve the business' fortunes.
arner conceded last year that Agrium didn't really have a good pulse on Australia.
It is likely Agrium would take a haircut on any sale despite impairments and the softening dollar.
Agrium outgunned GrainCorp to swoop on AWB in 2010 in a $1.2 billion deal.
Sources suggested Agrium could look to do a joint venture with Ruralco, which tried to expand its rural services footprint two years ago with an unsuccessful $250 million bid for Elders.
It has since sold its Elders stake and moved on to a grains marketing joint venture with giant US co-operative CHS.
Market watchers have long believed the rural services sector is ripe for consolidation, arguing the market is not big enough to sustain Elders, Landmark and Ruralco.
