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The Saskatchewan Wheat Pool is prepared to sell nine grain elevators and one of its port terminals so it can pursue a hostile bid for Agricore United.

The Canadian Competition Bureau has said it would approve the deal if the Pool got rid of some of its assets.

As a result, the Pool announced Wednesday that Cargill Ltd. would buy the nine elevators five in Alberta, three in Saskatchewan and one in Manitoba if the Pool acquires them from Agricore.

Agricoreelevators the Saskatchewan Wheat Pool wants to sellto Cargill
Davidson, Sask. (grain handling/crop input)
Kindersley, Sask. (grain handling/crop input)
Congress, Sask. (grain handling/crop input)
Vermilion,Alta. (grain handling)
Camrose, Alta. (grain handling/crop input)
Blackie, Alta. (grain handling)
Viking, Alta. (grain handling)
Equity, Alta. (grain handling)
Elva, Man. (grain handling/crop input)
Source: Saskatchewan Wheat Pool

Cargill has also agreed to sell to the Pool its 50 per cent ownership interest in the Cascadia terminal on Vancouver’s south shore that is jointly operated with Agricore. Cargill would, in turn, buy the Pool’s Vancouver port terminal on the north shore.

As part of the deal, Cargill would pay the Pool $70 million, plus the value of the crops in inventory at the elevators.

The Pool, meanwhile, would be required to back out of its partnership at the Vancouver port with James Richardson International. That’s the same privately held grain company that recently launched its own bid a friendly one for Agricore.

The deal between the Pool and Cargill depends on the Pool being able to complete its takeover of Agricore.

However,the Pool’s offer for Agricore has been rejected by company officials and Agricore’s principal shareholder, Archer Daniels Midland.

Regina-based Saskatchewan Wheat Pool is Canada’s second-largest grain company.Winnipeg-based Agricore, which has major holdings in Alberta and Manitoba, is the largest.

Agricore was formed when Agricore Co-operative merged with United Grain Growers in 2001.