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Highlights
- Doug Rathbone remains involved with Delta Agribusiness post-Elders acquisition.
- Elders enhances its position with Delta acquisition for $475 million.
- Nutrien Ag Solutions leads the Australian agriculture market.
Doug Rathbone, a prominent figure in agriculture, will play a key role in the $475 million acquisition of Delta Agribusiness by Elders (ASX:ELD). This acquisition strengthens Elders' presence in Australia’s agriculture market. Rathbone, known for leading Nufarm for over 15 years, joined Delta's board in 2017 and became chairman in 2018. Following this acquisition, he will remain involved with Delta for two more years as a standalone entity within Elders’ structure.
Rathbone’s portfolio also includes ownership of premium wineries, including Yering Station and Xanadu. His leadership at Delta has overseen the company’s expansion beyond New South Wales into 68 branches across multiple Australian states.
The buyout is expected to boost Elders’ ability to compete with Nutrien Ag Solutions, the leading player in Australia's crop protection and farm supply market with over 40% market share. Nutrien rebranded its Australian operations in 2020 after merging Landmark and Ruralco brands. Elders' acquisition strategy aims to consolidate its Australian presence and enhance its competitive stance.
While Elders' shares dropped 8% to $7.94 following a $246 million capital raising to fund the deal, the company’s leadership views the acquisition as strategically valuable. Rathbone also praised Delta's managing director, Gerard Hines, for successfully expanding the company's geographic footprint and product offerings.
Rathbone refrained from disclosing his financial gain from the deal, though his entities hold a 2% stake in Delta. He described the acquisition as a positive outcome for keeping Delta an Australian-operated business.
The deal now awaits approval from the Australian Competition and Consumer Commission. Analysts have mixed views, with some suggesting the price paid by Elders may be on the higher side but aligning with its long-term goals.
Rathbone’s legacy includes significant contributions to Nufarm, where he once held an 18% stake. His career also highlights his passion for premium wine production, an industry he notes is growing but facing tightening conditions.
Elders’ acquisition of Delta Agribusiness represents a significant step in strengthening its domestic market position while ensuring continued Australian leadership within the business.
