Agstar77:
Who said anything about more primary elevators? Look to Charlie’s post – Richardson Agricore will have three facilities just east of Calgary. I’m gonna stick my neck out and suggest that at least one will have to go to a competitor if the merger goes ahead. And none of these are “weakest links”. (AU had to divest of a few when they merged - a some were world class assets.) If LDC or Bunge or Paterson or a new investor picks one of them up, a small firm just got bigger.
The other thing we should consider when we talk about competition is the competition from processors – ethanol plants, biodiesel, etc. All good.
Who said anything about more primary elevators? Look to Charlie’s post – Richardson Agricore will have three facilities just east of Calgary. I’m gonna stick my neck out and suggest that at least one will have to go to a competitor if the merger goes ahead. And none of these are “weakest links”. (AU had to divest of a few when they merged - a some were world class assets.) If LDC or Bunge or Paterson or a new investor picks one of them up, a small firm just got bigger.
The other thing we should consider when we talk about competition is the competition from processors – ethanol plants, biodiesel, etc. All good.
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